Red Hat’s board of directors has approved the repurchase of up to $100 million in company stock.

Red Hat (Nasdaq: RHAT) closed at $12.72 on Wednesday, up 29 cents. Its 52-week high is $29.06, reached this spring.

“We believe, that based on current market prices, our stock is undervalued and that it is in the best interest of our shareholders for us to acquire shares in the open market. In addition, our repurchase program will help to offset dilution associated with our employee stock plans,” said Matthew Szulik, Red Hat’s chairman and CEO, in a statement.

Red Hat reported having nearly $1 billion in cash and cash equivalents as of Aug. 31. It has some 183 million outstanding shares.

Red Hat: