THE WHAT? Johnson & Johnson has announced a repurchase of up to US$5 billion of the company’s common stock, authorized by the Board of Directors.
THE DETAILS A company statement shared that repurchases “may be made at management’s discretion from time to time on the open market or through privately negotiated transactions.”
The repurchase program is said to have no time limit and may be suspended for periods or discontinued at any time.
J&J stated, “Any shares acquired will be available for general corporate purposes. The company had approximately 2,629.2 million shares of common stock outstanding as of July 22, 2022. The company does not expect to incur debt to fund the share repurchase program.”
THE WHY? Joaquin Duato, Chief Executive Officer, said, “The last few years have demonstrated the resilience of Johnson & Johnson. With continued confidence in our business and pipeline, the Board of Directors and management team believe that Company shares are an attractive investment opportunity.
“With our strong cash flow and lowest level of net debt in five years, we have the ability to invest in innovation, grow our dividend, execute strategic acquisitions, and take this action to deliver shareholder returns and drive long-term growth.”