Leidos Holdings [LDOS] on Tuesday said it has agreed to an accelerated stock repurchase program valued at $200 million in the near-term.

Leidos Chairman and CEO John Jumper. Photo: Leidos
Leidos Chairman and CEO John Jumper. Photo: Leidos

The company said about 80 percent of the shares will be repurchased shortly and it expects the transaction to be complete by June. Leidos said it has entered into an agreement with a financial institution for the accelerated share repurchase plan.

The new accelerated share repurchase program follows a $300 million program the company executed in the fourth quarter of fiscal year 2014, which ended on Jan. 31.

Companies typically repurchase shares of their own stock to bolster their stock price or to offset dilution from shares issued as part of stock-based compensation programs.

Tuesday’s announcement was welcomed by investors, who sent Leidos’ stock price up $1.68 per share, nearly 5 percent, to close at $37.05. Leidos’ stock price had fallen around $10 since the beginning of March, due in part to disappointing FY ’15 earnings and sales guidance the company issued last week when it said it expects persistent headwinds in the defense and federal government markets.