Rambus Initiates Accelerated Share Repurchase Program To Repurchase An Aggregate Of ~$50M Of Its Common Stock
Portfolio Pulse from Benzinga Newsdesk
Rambus Inc. (NASDAQ:RMBS) has launched an accelerated share repurchase program to buy back approximately $50 million of its common stock. The program, in partnership with Royal Bank of Canada through RBC Capital Markets, LLC, is part of Rambus's capital allocation strategy to enhance stockholder value. The company will pre-pay $50 million and initially receive around 675,000 shares, with the final number of shares based on the average stock price, less a discount. The program is expected to conclude by the end of Q1 2024.
March 01, 2024 | 1:46 pm
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Rambus Inc. has initiated a $50 million accelerated share repurchase program, indicating strong balance sheet and cash generation, aiming to enhance stockholder value.
Accelerated share repurchase programs often lead to a positive market perception, as they can indicate that a company believes its stock is undervalued and that it has strong financial health. For Rambus, this move is likely to be viewed positively by investors, potentially leading to a short-term increase in stock price due to the reduced supply of shares and the signal of confidence from the company's management.
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