Sandisk Can Now Buy Back $15.5 Billion of Its Own Stock. That's 8.6% of the Company.
The memory maker's board just added $14 billion to a buyback it had nearly exhausted in two months. Can the cash flow funding it last?
Overview
Memory maker Sandisk (NASDAQ: SNDK) reported fiscal fourth-quarter results last Wednesday, and the quarter itself wasn't the biggest news in the release. The board approved an additional $14 billion share repurchase program, bringing Sandisk's total remaining buyback authorization to $15.5 billion.
For perspective, the market values the entire company at about $181 billion as of this writing. Spent at recent prices, $15.5 billion would retire about 8.6% of Sandisk's shares.
Details
Whether the program delivers that much value comes down to the cash flow funding it -- cash flow that mostly didn't exist a year ago.
Source
Originally published at www.fool.com.