Old Dominion Plans $250 Million Share Repurchase
Based on recent share prices of about $65, the buyback could repurchase about 3.84 million shares. That amount of stock represents about 4% of the outstanding shares at the company that is ranked No. 11 on Transport Topics' Top 100 list of the largest for-hire carriers in the United States and Canada. As of late May, Old Dominion’s shares had lost about 10% of their value on a year-to-year basis. During 2016, shares have climbed nearly 9% through late May.
The new repurchase plan will start when the remaining $12 million of stocks from a previous authorization is bought back. The timing of repurchase under the new plan will be at the company’s discretion.
CEO David Congdon said, “While we remain committed to investing in the strategic growth of our business, this new program reflects our strong financial position and substantial cash flow, which provides the flexibility for us to continue to return capital to our shareholders.”
