RALEIGH, N.C. - —
Red Hat, Inc. (NYSE: RHT), the world's leading provider of open source solutions, today announced that its Board of Directors has authorized the repurchase of up to $1 billion of the Company’s common stock from time to time on the open market or in privately negotiated transactions.
The new program is to replace the previous $1 billion repurchase program that will expire on June 30, 2018. From its commencement on July 1, 2016 through June 20, 2018, the Company repurchased approximately 8.2 million shares of its common stock for $751 million under the previous program.
“Red Hat’s Board of Directors and management team firmly believe in our long-term growth prospects and our ability to generate operating cash flow through our subscription business model. We are also demonstrating our continued focus on efficient capital allocation with a new $1 billion stock repurchase authorization,” stated Eric Shander, Executive Vice President and Chief Financial Officer of Red Hat.
The timing and the amount of any repurchases of common stock will be determined by Red Hat management based on its evaluation of market conditions and other factors. Repurchases of common stock may also be made under a Rule 10b5-1 plan, which would permit common stock to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The repurchase program may be suspended or discontinued at any time. Any repurchased common stock will be available for use in connection with the Company's stock plans and for other corporate purposes.
As of May 31, 2018, the Company had cash and investments of approximately $2.5 billion.
Red Hat had approximately 177.5 million shares of common stock outstanding as of May 31, 2018.