FedEx Corp. (NYSE: FDX) has joined the wave of companies continuing to announce stock buybacks. The freight and package shipping giant’s board of directors announced on Tuesday night that it has authorized a new share repurchase program of up to 25 million shares of its common stock.
While the shares being repurchased can be acquired from time to time in the open market or via privately negotiated transactions, 24/7 Wall St. wanted to see what the buyback really translates to against a variety of relative metrics.
For starters, the prior FedEx buyback authorization that was announced in September 2014 for 15 million shares has been completed. There were 272 million common shares outstanding as of January 25, 2016. If you use FedEx’s latest count as gospel, that means that FedEx has authorized itself to buy back up to about 9.2% of its outstanding shares.
Then there is the consideration of what FedEx has done in the past. Since its fiscal year 2014 started, the company has returned a total of almost $8 billion to shareholders by repurchasing more than 57 million shares.
Now use a $130 share price and let’s see what 25 million shares translates to. That would be roughly $3.25 billion at current market prices. FedEx has a market cap of roughly $36 billion.
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