Avigilon Wastes $39 Million on Stock Buyback

Author: John Honovich, Published on Jul 14, 2015

Avigilon is investing - in their own stock.

Over the past 2 months, Avigilon has spent nearly $40 million buying back their own stock.

In this note, we examine:

  • How they have 'profited' $22 million doing this
  • Why they undertook this endeavor
  • How this impacts their future growth plans

******** ** ********* - ** ***** *** *****.

**** *** **** * ******, ******** *** ***** ****** $** million ****** **** ***** *** *****.

** **** ****, ** *******:

  • *** **** **** '********' $** ******* ***** ****
  • *** **** ********* **** ********
  • *** **** ******* ***** ****** ****** *****

[***************]

Profited $**+ *******

** ****,******** ****** $*** *********** *********, ******* **** ****** ** $** ****. ***, ******** bought *.* ******* ****** **** ****** ********* ** ** ******* price ** $**.** *** *****, ********** **** $** ** '******' per ***** *** * ***** ** **** **** $** *******.

** ******, ** *******, ********'* ***** *********, ******** **** ***********. Furthermore, ****** ***** *** ** ***'* ********* ** * **** long-term ********.

*******, ** ******** ** ****** ***** *** ****, ******** *** reduced *** ****** ** ****** *********, ***** *********** ******** ******** per ***** **** ** ***** ******* ****** *** ****.

But ****** *****

*******, *** ***** ** ******* ** ~$**.** ** ******** ****, about **% ***** **** **** **** ****** *** ****** ** the ******. **** *** ******* ***** ***** *******, *** ********* did *** **** *** **** *** ******** *** *** **** funds *** ********* ** ***** ********.

Why **** ********* ****

******** ** ******** **** ******* ***** ******* ***** *****. **** **** ******* *** ***** ***** *** ***** $**, when **** ******* *** *** *** ** *** ** ******* requirements, *** ***** *** ~$**.**. *****, *** ***** ** ~$**.**, as ***** ** *** ***** ******* *****:

** *** ******** ****, ** ********* *** ****** ********* *** price.

Growth ******

******** *** $** ******* ** ****, ** ****** ** ** ****. *******, ******** ********** * $*** ******* ****** *************** **** ****, ****** $** ****** ******* **** ** **** the *********** ********.

*** ~$** ******* ********* **** *********** **** ***** ****** '********' and ****** ****** ***********. ****, ***** *** ******* ** ***** price *********** ********** ******, ******* *** ****** ***** ** **********.

Q2 *******

**** ** *** ********'* ** *******. ***** **** **** ***** ~$40 ******* ****** **** ***** *****, **** ****** *** * great ******* ** **** **** **** ******* ***** ***** ***** decline.

****** - ** ******* ********** ************ *********. ***: ******** **** ******* ******** - ** ****

Comments (10)

***** **** **** ***** ~$** ******* ****** **** ***** *****, they ****** *** * ***** *******...

*** ****, ** ****** **** ** **** ****** *** ***** back ******* **** **** **** **** ***** ** **** * 'great' *******, ** *** **** ** *****, ** ***** ****** be ********** ******* ******* *** ********* *******?

****'* *** ** ************* ********** ***** *** ***** ******** *** backs ****** *** *** ** *** ******* (**** * ******* would **** *** **** **** *** ***** ******* ****).

*****'* ******* **** **** * ********** ******* *** *****.

* ** ****** ****** **** ********** ** **** * ******** implies **** **** *** ********* **** ******* *** ***** ** be ****. *** *** *****, ***** **** *** ****** ** buy ****. **'** *** **** *** ******* *** *********.

* ***** ********** ** ********* ** *** ******* **** *** much ****** **** **** *******, ***** **** **********.

****.. * ***** **** **** ********** **** **** ***** **** a ***** *******... **.. ** **** ** ******* *******?

****://********.***/*****-*****/*****-********/********-***********-*******-******-******-*******-****-*******?**********=********************************

**, *** ******* ******* ** ***.

****, ***** ***** ** **** **** ******* ***** *** ******* were ********, ** ********* *** **** ***** ** * *******.

********** **** ****** *** ****** ******** ******** ** * ******...

*** **** ** * **** ******* ** ***** **** ********* could **** ****** ** ******* *** **** ******* ** *** at *** ******* ****** **** *** ******* ** ********* **** wasn't ****** ***.

********* **** *** ****** *********** ******* ***** *********...

* ******* **** **** **** ** ***** ** ****** ******* that ** ******* **** *** ***** ** ***********.

** **** **** * ***** ******* ** **** **** **** are *****.

****'* *** ** ************* ********** ***** *** ***** ******** *** backs ****** *** *** ** *** ******* (**** * ******* would **** *** **** **** *** ***** ******* ****).

** *** **** ******* **** *** *** ******* *** ******* because ** *** ****** *** ** *** *******? ****, ** would ****** **** ** ****'* **** ***** ** ***** *** opening **** ** *** **** ** ****.

****'* ***:

*,***,*** - ***,*** = *,***,***(***** ****** **** ***** ****** **** ** */**)

**,***,*** / **,*** = ** ****(****** ** **** / ***. ***** ******)

***** *** ************* **** ******* */** *** */* (*********).

** - ** = * ****.

****,June ** is therefore the earliest date they could have stopped, and that's assuming were able to trade the absolute maximum everyday since May 21.

** *** ***** ***/** ** *** **** *** ****** ********* the ******** ** *** *.* ******* ******?

***, * ******** *** ******** ** ******** - **** *** in **** **** ****** *** **** ****.

** **** * ****** ********/*** *** *****?

*'* ******* ** **** ******** *** ******** ***** ***** ** if *** ** ** ******* ** *****.

****, **'* ******** **** **** ******* **** **** *** ******* of *** ** *** ******* ******** ************ *** *** *******.

  1. *** ** ******* ********* *** *** *** ********* ****** **** 1 ************ *** ** *** ******* ** * *** ***** ******* are ********.
  2. **** **** ********* ** *** **** ****** ******** ******* ***** their ********** ****** **** ***-********** ************ ****** ***** *** **** weeks ** ******* *** *** ********* ***********.

**** *** ** ****** *** ******* ** ***, *** ****** a ************ ****** ***, ***** ** ********** ** *** ***-****** material ***********.

********* ******** **** ***** ***** **** ********, *** **** **** they ****** $** ******* ** **** ***** ****** *** ******** a ****** ******* **** *** ****** ** ******* *********.

*** * **** *** ** ********* * '***** *******'.

** ******* **** ** ******* **** **** *** ** **** to ****** ***** *** ****** *********** **** * **** **** block *******. ** *** **** *** ****** ******* ** ***** of ***, *** *** ** **** ** ***** ****.

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