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CLEARWATER -- Tech Data Corp. (symbol: TECD) committed another $100 million towards repurchasing its own shares this week, boosting the value of current investors' holdings.
On Oct. 31, Tech Data reported in its financial statements that it held nearly $900 million in cash.
Including this most recent repurchasing commitment, Tech Data has spent $1 billion on share buyback since 2005. Robert Dutkowsky, the Clearwater firm's CEO, says the repurchasing effort “demonstrates our confidence in Tech Data's financial performance and future growth opportunities.”
Tech Data generated $24.4 billion in revenues in its 2010 fiscal year. Beyond today's announcement, the technology distributor appears to have benefitted from improved market conditions this week; its stock is up 8.2% since Nov. 25, to a price near $50 early Thursday. Over the past year, the stock's value is up roughly 10%.
At its current price, Tech Data's $100 million repurchase commitment would reduce the company's total outstanding shares by 4% to 5%.
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