Red Hat (NYSE: RHT) is going to invest another $300 million in itself again.
The Raleigh-based global leader of Linux software development and related services discloses another stock buyback plan.
Red Hat announced the buyback shortly after the markets closed Monday. The company just wrapped up a $300 million buyback plan on Feb. 28, purchasing 3.6 million shares at an average price of $49.15, Red Hat said.
Red Hat shares closed at $49.26 Monday.
The firm’s shares ranged between $62.75 and $46.34 over the past 12 months.
“Over the last 13 months we have repurchased $300 million or 5.9 million shares of Red Hat common stock under the current program, equivalent to 3% of our shares outstanding as of February 28, 2013,” said Charlie Peters, Red Hat’s chief financial officer. “Our management team and Board of Directors have a strong conviction in our long-term growth prospects and our ability to generate profits and cash flow. We believe that stock repurchases demonstrate our commitment to building shareholder value as well as confidence in achieving long-term growth.”
Red Hat has cash and investments on hand totalling some $1.3 billion as of Feb. 28
