LOWELL, Ark. – J.B. Hunt Transport Services said that its Board of Directors has approved a new share repurchase program that will allow the repurchase of $500 million of the company’s common stock.
The company noted that the timing and amount of the repurchase will vary based on market conditions, cash flows, securities law limitations and other factors. The company also said that the repurchase program may be suspended, extended or discontinued at any time.
It was not immediately clear what impact the share repurchase program will have for the company.
Such initiatives typically allow companies to use cash to reinvest in their operations, pay off debt or pay money back to investors as a dividend. The proceeds also can be used for business expansion efforts, including acquisitions.
They also can help investors by returning cash to those who want to exit their investment and can increase earnings per share by reducing the overall share count.