Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) Expands Share Repurchase Program
Allscripts Healthcare Solutions Inc (NASDAQ:MDRX)’s Board of Directors has accepted a new stock repurchase plan under which company may buy up to $200 million of its equity through December 31, 2019.
The new stock repurchase plan supersedes the prior existing stock repurchase plan, which authorized Allscripts to buy $150 million of its equity through December 31, 2018. The company bought 8.1 million shares or around $97 million worth shares of common stock. Under the latest plan, the firm could buy nearly 18.4 million additional shares, or nearly 10% of the firm’s outstanding shares as of close of October 30, 2016 reliant on the November 17 closing price.
Melinda Whittington, the Chief Financial Officer of Allscripts, said that expanding and extending firm’s share repurchase plan highlights their current commitment to increase shareholder value. The new plan shows an attractive component of their capital deployment plan and their continued confidence in firm’s long-term growth opportunities and free cash flow generation prospect.
Allscripts intends to buy shares regularly in privately negotiated deals or in open market, subject to prevailing market scenario. There is no assurance as to the exact count of shares or value that will be bought under the announced stock repurchase plan, and the firm may stop purchases program at any time. Whether company makes any repurchases will rely on many factors, such as financial and business performance, the market and business conditions at the time, comprising the price of Allscripts shares, and several other factors that management finds relevant.
The firm is a pioneer in healthcare information technology offerings that advance financial, operational and clinical results. The innovative solutions link places, people and data across a connected and open community of Health™. Connectivity authorizes caregivers to make better choices and deliver better care for population in good health.
In the last trading session, the stock price of Allscripts gained 0.48% to close the day at $10.55.