C.H. Robinson to Enhance Buyback - Analyst Blog
August 27 2013 - 5:55PM
Zacks
Third-party logistics company, C.H. Robinson Worldwide,
Inc. (CHRW) has announced an increase in its share
repurchase program by 15 million shares. This represents
approximately 9.4% of the company’s outstanding shares as of Aug
23, 2013.
This is the second repurchase program of C.H. Robinson in a
year, after the company increased its buyback of shares by 10
million shares in Aug 2012. The company still has 8.7 million
shares left with the previous share repurchase authorization.
Including the current number of shares authorised for share
repurchase, the total stands at 23.7 million.
Out of the total share repurchase value, $500 million will be an
Accelerated Share Repurchase (ASR) Program with JP Morgan Chase
Bank National Association and Morgan Stanley & Co. LLC.
Initially, C.H. Robinson will receive 6,118,882 shares while the
final number of shares will be determined at the completion of the
ASR program.
The share price will be calculated on the weighted average price
of company’s common stock during the ASR term minus an agreed
discount. The ASR term is expected to be 4-7 months.
Apart from share repurchase, the company is also borrowing $500
million from prudential, New York Life and Metlife in a private
placement transaction. The average maturity age of the debt is 15
years and weighted average coupon rate is 4.28%. The new debt will
expand the company’s leverage position.
C.H. Robinson has a rich history of enhancing shareholders’
wealth. Apart from share repurchase, the company has continuously
paid dividends to shareholders for over 25 years. C.H. Robinson’s
stock price declined around 6.5% post its second-quarter financial
results, where the company’s earnings failed to meet the Zacks
Consensus Estimate.
Currently, C.H. Robinson holds a Zacks Rank #4 (Sell). Other
stocks worth considering in this sector include P.A.M
Transportation Services Inc. (PTSI) Swift
Transportation Co. (SWFT) and Con-Way
Inc. (CNW). Both PTSI and SWFT currently carry a Zacks
Rank #1 (Strong Buy) while CNW holds a Zacks Rank #2 (Buy).
CH ROBINSON WWD (CHRW): Free Stock Analysis Report
CON-WAY INC (CNW): Free Stock Analysis Report
PAM TRANSPORT (PTSI): Get Free Report
SWIFT TRANSPORT (SWFT): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
P A M Transport Services (NASDAQ:PTSI)
Historical Stock Chart
From Mar 2024 to Apr 2024
P A M Transport Services (NASDAQ:PTSI)
Historical Stock Chart
From Apr 2023 to Apr 2024