Check Point expands share repurchasing plan by $2b
8 Aug, 2021 18:40
Shiri Habib-Valdhorn
The Israeli cybersecurity company is authorized to continue repurchasing its shares up to $325 million each quarter.
Over the past year Israel cybersecurity solutions company Check Point Software Technologies Ltd. (Nasdaq: CHKP) has continued to generate a lot of cash but rather than using it for acquisitions it has tended to allocate the capital for its share repurchase program. The company clearly believes that the best possible investment is in itself, even if the share price has risen over the years and even if investors would rather see Check Point investing in acquisitions.
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Check Point has now announced that its board has authorized a $2 billion expansion of the company's on-going share repurchase program. Under the extended share repurchase program, Check Point is authorized to continue repurchasing its shares up to $325 million each quarter.
As of June 30, 2021, Check Point has approximately 133 million ordinary shares outstanding. Since the beginning of the share repurchase program, Check Point has repurchased 188 million shares for a total purchase price of about $11.1 billion. The updated plan extends the company's existing repurchase program from February 2020 which is expected to be completed during the fourth quarter of 2021. Check Point cofounder and CEO Gil Shwed is himself a major shareholder in the company.
On Friday, Check Point's share price fell 0.84% to $124.46, giving a market cap of $16.528 billion.
Published by Globes, Israel business news - en.globes.co.il - on August 8, 2021
Gil Shwed photo: Tamar Matsafi
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