General Dynamics approves buyback of 20M shares
NEW YORK (AP) — Defense contractor General Dynamics said Thursday that it will buy back up to 20 million shares of its own stock.
That program is worth as much as $1.98 billion, based on Wednesday's closing price.
Companies repurchase their shares in an effort to boost earnings per share and the value of their stock.
The Falls Church, Va., company had said last month that it would buy back $11.4 million in stock — the remainder of what had been left under its program — and seek approval during its board meeting in February for a new share repurchase program.
It had 352.2 million shares on the market as of Sept. 29. Its stock is up 49 percent over the last 12 months and it reached an all-time high of $102.18 on Friday.
Shares of General Dynamics Corp. picked up $1.10 to $99.98 in morning trading.