Shares of Dell Inc. (NASDAQ:DELL) are trading up in pre-market trading on the company’s announcement that it is FINALLY able to resume its share buyback plan. Dell announced that it has authorized a stock buyback plan for up to $10 Billion. More importantly, the company said IT WILL RESUME THE SHARE REPURCHASE PROGRAM THIS WEEK.
Also at the shareholder meeting, the company is electing 11 members to its board of directors: Donald J. Carty, Michael S. Dell, William H. Gray III, Sallie L. Krawcheck, Alan (A.G.) Lafley, Judy C. Lewent, Thomas W. Luce III, Klaus S. Luft, Alex J. Mandl, Michael A. Miles and Sam Nunn.
24/7 Wall St. has been expecting this buyback announcement for some time. The company had to previously suspend its repurchase activities when it was a delinquent filer and during its financial review. This is at the higher-end of the range of a buyback dollar amount we were expecting.
Dell has already seen almost 1 million shares trade hands in pre-market trading and shares are up close to 2.5% at $24.53. The 52-week trading range is $21.61 to $30.77.
Jon C. Ogg
December 4, 2007