Western Digital Corp. (WDC: Quote) said Monday that its board of directors has increased the company's share repurchase authorization by an additional $1.5 billion. Separately, the company said it will transfer its stock exchange listing to Nasdaq Global Select Market from the New York stock exchange.
The Irvine, California-based hard disk driver maker noted that the additional repurchase authorization is effective immediately and extends the share buyback program by five years, during which time additional shares can be authorized for repurchase.
According to Western Digital, the amount of share repurchases will depend on market conditions and corporate considerations. The company will make share repurchases on the open market.
As of May 4, 2012, Western Digital had about 260 million shares outstanding.
John Coyne, chief executive officer of Western Digital said, "The decision to increase WD's stock repurchase program is part of our capital allocation strategy to efficiently deploy cash to shareholders while maintaining strategic flexibility. We believe that Western Digital's stock is a compelling investment based on our ability to create additional value for our customers and shareholders in the growth markets we serve."
Separately, Western Digital said it is transferring its stock exchange listing to Nasdaq Global Select Market from the New York stock exchange. The company's shares will begin trading on the Nasdaq beginning June 1, 2012 and the ticker symbol will remain "WDC".
In late April, Western Digital reported a profit for the third quarter that more than tripled to $483 million or $1.96 per share from $146 million or $0.62 per share in the year-ago period. Revenue for the quarter rose to $3.0 billion from $2.3 billion in the same period last year.
WDC closed Friday's trading at $34.66, down $2.41 on a volume of 7.98 million shares. In Monday's pre-market, the stock is adding $0.40 or 1.15 percent to $35.06.
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by RTT Staff Writer
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