Dell adds $5B to share buyback plan
Computer maker Dell Inc. said on Tuesday that its board has authorized up to $5 billion in share repurchases on top of the $2.16 billion already authorized.
The $5 billion authorization represents 19 percent of the company's $26.24 billion market capitalization.
Dell repurchased $1.1 billion worth of shares in the second quarter.
The company said it is generating cash from operations because it has reduced costs. It said the latest authorization from the board would allow it to make "opportunistic share repurchases as a key element of our disciplined capital allocation strategy." The size and timing of stock purchases will depend on factors including price and market conditions, the company said.
Dell shares had risen 19 cents to close at $14.38 before the announcement. They rose another 33 cents, or 2.3 percent, to $14.71 in aftermarket trading.