Paychex Authorizes $400M Stock Repurchase
Portfolio Pulse from Benzinga Newsdesk
Paychex, Inc. has announced that its board of directors has authorized a stock repurchase program of up to $400 million of its common stock. The repurchase program is set to begin on February 1, 2024, and will expire on May 31, 2027.
January 19, 2024 | 1:57 pm
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Paychex's new $400 million stock repurchase program may signal confidence by management in the company's financial health and future prospects, potentially leading to a positive short-term impact on the stock price.
Stock repurchase programs often lead to a reduction in the number of shares outstanding, which can increase earnings per share and return on equity, typically resulting in a positive market reaction. However, the impact may be moderated since the program begins in 2024, which is a significant time away from the current date.
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