Avigilon Wastes $39 Million on Stock Buyback
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
Profited $**+ *******
** ****,******** ****** $*** *********** *********, ******* **** ****** ** $29 ****. ***, ******** ****** *.* million ****** **** ****** ********* ** an ******* ***** ** $**.** *** share, ********** **** $** ** '******' per ***** *** * ***** ** more **** $** *******.
** ******, ** *******, ********'* ***** plummeted, ******** **** ***********. ***********, ****** money *** ** ***'* ********* ** a **** ****-**** ********.
*******, ** ******** ** ****** ***** off ****, ******** *** ******* *** number ** ****** *********, ***** *********** increase ******** *** ***** **** ** total ******* ****** *** ****.
But ****** *****
*******, *** ***** ** ******* ** ~$12.75 ** ******** ****, ***** **% lower **** **** **** ****** *** shares ** *** ******. **** *** further ***** ***** *******, *** ********* did *** **** *** **** *** Avigilon *** *** **** ***** *** investing ** ***** ********.
Why **** ********* ****
******** ** ******** **** ******* ***** falling ***** *****. **** **** ******* *** ***** price *** ***** $**, **** **** stopped *** *** *** ** *** of ******* ************, *** ***** *** ~$18.50. *****, *** ***** ** ~$**.**, as ***** ** *** ***** ******* below:
** *** ******** ****, ** ********* has ****** ********* *** *****.
Growth ******
******** *** $** ******* ** ****, at ****** ** ** ****. *******, ******** ********** * $*** ******* ****** *************** **** ****, ****** $** ****** already **** ** **** *** *********** purchase.
*** ~$** ******* ********* **** *********** into ***** ****** '********' *** ****** future ***********. ****, ***** *** ******* in ***** ***** *********** ********** ******, ******* *** ****** ***** ** challenges.
Q2 *******
**** ** *** ********'* ** *******. Given **** **** ***** ~$** ******* buying **** ***** *****, **** ****** had * ***** ******* ** **** they **** ******* ***** ***** ***** decline.
****** - ** ******* ********** ************ investors. ***: ******** **** ******* ******** - ** 2015