TeleTech Holdings, Inc. (TTEC - Snapshot Report) recently announced its board of directors’ approval of an authorization to purchase additional shares worth $25 million under the share repurchase program. The buyback plan does not have an expiration date. Earlier in May this year, TeleTech had extended its share repurchase program by a similar amount.
During the first six months ended Jun 30, 2013, TeleTech repurchased 1.4 million shares for $31 million at an average price of $22.14 each. Out of these, 937,000 shares were bought back during the last reported quarter for $21.2 million. Moreover, as of Jun 30, 2013, the company had $19.4 million worth of share repurchase authorization remaining under the buyback program.
The company intends to use its cash from operations for the stock repurchase. In the last reported quarter, TeleTech generated $33.7 million from its operating activities, while cash and cash equivalents aggregated $150.6 million at quarter-end.
TeleTech presently pays no quarterly dividends and uses only share repurchase programs to return cash to its shareholders. Consequently, by augmenting its share repurchase tally, the company plans to return additional cash to provide attractive risk-adjusted returns to stockholders.
TeleTech provides technology-enabled solution, which helps its client companies to maximize their revenues, transform customer experience and build an optimum business model.
TeleTech currently carries a Zacks Rank #3 (Hold). Better-placed stocks in the same industry that are worth a look include Barrett Business Services Inc. (BBSI - Snapshot Report), Cap Gemini S.A. (CGEMY - Snapshot Report) and R.R. Donnelley & Sons Company (RRD - Analyst Report). All of them carry a Zacks Rank #1 (Strong Buy).