Dell is moving forward with a massive, $10 billion buyback of its common stock, equal to nearly 20 percent of its market capitalization.
The personal computer giant, which recently became current with its regulatory filings, told shareholders at its annual meeting that it will resume repurchasing shares this week.
“Dell is committed to a long-term share repurchase program as part of an overall capital allocation plan that supports growth and also returns value to shareholders,” said Michael Dell, chairman and CEO.
Dell has historically been a major buyer of its own stock. It had suspended its repurchase program while it was investigating accounting issues that resulted in a recent restatement.
“This is a significant event, especially for a company that’s lost about 25 percent of its market value since October,” David Garrity, director of research at Dinosaur Securities, told Bloomberg.