In the first quarter Actuate authorized the repurchase of up to $2.8m in shares, itself a significant increase from the $1.5m approved in the prior quarter.
Actuate CEO Pete Cittadini said in a statement that [Our] stock price does not reflect the company’s long-term prospects for earnings growth and cash generation.
Share repurchasing usually means a company has more cash reserves that it needs for its business. A tax efficient way of passing this value to shareholders is to buy its own shares. Each of the remaining shares becomes more valuable because earnings are spread over a small share base.
Actuate’s stock was trading at $2.16, up nearly half a percent, during the afternoon session on Nasdaq yesterday.
