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In a move to further enhance shareholders' wealth, JetBlue Airways Corporation’s (JBLU - Free Report) board of directors approved a new share repurchase program. This latest move reflects the company’s sound financial position and favorable prospects.
The new authorization permits JetBlue to buy back its common stock worth up to $750 million. The duration of the program, which commences from Jan 1, 2018, is of two years. As of Sep 30, 2017, the company had approximately 327.8 million shares outstanding. This low-cost carrier ended the third quarter of 2017 with cash and cash equivalents of nearly $394 million.
Notably, management’s new authorization comes after JetBlue completed its previous $500 million share repurchase program in September, 2017. We note that the program had commenced on Jan 1, 2016.
The latest buyback program, announced by this Zacks Rank #3 (Hold), is in sync with its impressive record of rewarding shareholders. On the third-quarter conference call, JetBlue stated that the company has returned in excess of 7% of its average market capitalization to its shareholders in a year. The figure is the second best among airline stocks, according to JetBlue. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apart from JetBlue, United Continental Holdings (UAL - Free Report) also recently announced a new $3 billion share repurchase program. The company’s previous $2 billion share repurchase program announced in July 2016 is expected to be completed by this year-end. Additionally, the likes of Southwest Airlines (LUV - Free Report) and Delta Air Lines (DAL - Free Report) have hiked their respective dividend payouts this year.
In fact, the financial prosperity of companies in the airline space has allowed them to undertake shareholder-friendly measures like dividends and buybacks. We believe such initiatives not only enhance shareholders’ return but also raise the market value of a stock.
Through share repurchases and dividend payouts companies bolster investors’ confidence, persuading them to either buy or hold the scrip.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
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JetBlue Boosts Shareholder Returns, OK's $750M Share Buyback
In a move to further enhance shareholders' wealth, JetBlue Airways Corporation’s (JBLU - Free Report) board of directors approved a new share repurchase program. This latest move reflects the company’s sound financial position and favorable prospects.
The new authorization permits JetBlue to buy back its common stock worth up to $750 million. The duration of the program, which commences from Jan 1, 2018, is of two years. As of Sep 30, 2017, the company had approximately 327.8 million shares outstanding. This low-cost carrier ended the third quarter of 2017 with cash and cash equivalents of nearly $394 million.
Notably, management’s new authorization comes after JetBlue completed its previous $500 million share repurchase program in September, 2017. We note that the program had commenced on Jan 1, 2016.
The latest buyback program, announced by this Zacks Rank #3 (Hold), is in sync with its impressive record of rewarding shareholders. On the third-quarter conference call, JetBlue stated that the company has returned in excess of 7% of its average market capitalization to its shareholders in a year. The figure is the second best among airline stocks, according to JetBlue. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
JetBlue Airways Corporation Price
JetBlue Airways Corporation Price | JetBlue Airways Corporation Quote
Apart from JetBlue, United Continental Holdings (UAL - Free Report) also recently announced a new $3 billion share repurchase program. The company’s previous $2 billion share repurchase program announced in July 2016 is expected to be completed by this year-end. Additionally, the likes of Southwest Airlines (LUV - Free Report) and Delta Air Lines (DAL - Free Report) have hiked their respective dividend payouts this year.
In fact, the financial prosperity of companies in the airline space has allowed them to undertake shareholder-friendly measures like dividends and buybacks. We believe such initiatives not only enhance shareholders’ return but also raise the market value of a stock.
Through share repurchases and dividend payouts companies bolster investors’ confidence, persuading them to either buy or hold the scrip.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
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