Brightview buys back $100M in stock

BrightView Holdings, Inc. announced that its Board of Directors has authorized a share repurchase program totaling $100 million. The company said this “repurchase program allows for ongoing investment in the business, while utilizing moderate balance sheet leverage and facilitating opportunistic share repurchases.”

Generally a company chooses a stock buyback to increase shareholder value. Or corporate management may feel the market has discounted its share price too steeply. Year to date, Brightview’s stock price has dropped more than 15%. And when a company spends millions of dollars buying back its own stock, it can be a sign that management believes that the market has gone too far in discounting the shares. In the days following the buyback, Brightview’s stock has risen slightly. 

The company’s buyback announcement continued, 

“As part of our continued focus on strategically allocating capital and driving shareholder value, we are pleased to announce this new share repurchase program,” said BrightView president and CEO Dale Asplund. “The strength in our balance sheet, coupled with our current valuation and unwavering commitment to drive sustainable and long-term profitable growth, gives us the confidence to reinstitute our share repurchase program and return capital to shareholders in a disciplined and opportunistic manner.”