Hilton Boosts Shareholder Value With Additional $2B Buyback
Zacks Investment Research | Mar 03, 2020 10:22PM ET
In an attempt to boost shareholder value, Hilton Worldwide Holdings Inc.’s (NYSE:HLT) board of directors authorized an additional $2 billion of common stock under its existing stock repurchase program. The company now has approximately $2.3 billion for repurchase.
The company will initiate share repurchase in the open market, through privately-negotiated transactions complying with the rules as well as regulations of the Securities and Exchange Commission. However, the amount and timing of the repurchases are subject to factors primarily related to available liquidity, cash flow and overall market conditions.
In 2019, Hilton bought back 16.9 million shares for approximately $1.5 billion. During fourth-quarter 2019, the company repurchased 4.3 million shares of its common stock for roughly $443 million. Since the inception of Hilton's stock repurchase program in March 2017, the company has repurchased approximately 55.5 million shares of its common stock for approximately $4.3 billion at an average price per share of $77.91.
Nonetheless, this initiative is in sync with the company’s motive to strengthen its shareholders’ value through regular buybacks.
Price Performance
Shares of Hilton have gained 11.1% in the past year against the Zacks Investment Research
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