Leidos [LDOS] on Wednesday said it will conduct a $100 million accelerated stock repurchase with most of the shares to be bought in the near-term.
The company said 80 percent of the shares will be delivered in the near-term, adding that the agreement is expected to be completed by August. The accelerated repurchase is part of its previously announced stock buyback program.
Roger Krone, Leidos’ chairman and CEO, has said the company’s priority for capital deployment is dividends but that share buybacks are also a tool for returning value to shareholders. On the company’s first quarter earnings call on May 12, Krone said Leidos is “being very thoughtful about where we’re going to deploy our capital,” and is being very disciplined when it comes to considering acquisitions.
Of recent acquisitions in the mid-tier contractor space, Krone said, “The deals that had happened, I think everyone has taken a look at. One would draw from that that we have as well, and we are not disappointed that those deals went to another company again.”
Leidos said it will use cash on hand for the repurchases.