FTI Consulting, Inc
) recently announced that its board of directors has approved a
two-year share repurchase program worth approximately $250
The company seeks to execute the program in the open market or
in negotiated transactions or through accelerated stock buyback
agreements, depending on share price and other macro factors. The
global business advisory firm can also terminate the program at any
time, without prior notice.
The company remains focused on enhancing share holder value and
approved a two-year stock buyback program of up to $500.0 million
earlier in November 2009, by terminating the $50.0 million stock
repurchase program approved in February 2009. In September 2011,
the company successfully completed its $500 million stock
As of March 31, 2012, the company had shares outstanding of
about 43 million. At the end of first quarter 2012, the company had
cash and cash equivalents (excluding restricted cash) of $182.4
million and long-term debt, net of $643.3 million.
We appreciate FTI Consulting's effort to bolster long-term
shareholder value. We believe that the share repurchase
authorization affirms the company's positive outlook and shows the
company's confidence in its fundamentals.
Concurrently, buying back shares will help the company in
reducing the share count, thereby increasing earnings per share and
return on equity. As of June 11, 2012, the shares of the company
traded at $29.74. The stock had historically traded between $29.26
and $45.00 in the last 12 months. Apart from bolstering shareholder
value, this strategic move will also lift the relatively
undervalued share price.
FTI Consulting, which competes with the likes of
CRA International Inc.
Navigant Consulting Inc
), currently retains a Zacks #5 Rank, which translates into a
short-term Strong Sell rating. We are also maintaining our
long-term Underperform recommendation on the stock.
CRA INTL INC (CRAI): Free Stock Analysis Report
FTI CONSULTING (FCN): Free Stock Analysis
NAVIGANT CONSLT (NCI): Free Stock Analysis
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