Risk management specialist CorVel announced this morning that its board of directors approved a stock repurchase plan to buy back $14 million worth of its stock.
The board entered into a pre-arranged 10b5-1 stock trading plan to buy up its shares beginning on June 26 and running through Aug. 21. Any shares repurchased under the program may be purchased at prevailing market prices through open market, block trade, or unsolicited negotiated transactions, depending upon conditions present in the market.
CorVel initiated its first buyback program in 1996, and since that time, through March 31, has spent $301 million to repurchase almost 15.7 million shares, or what would amount to 59% of its outstanding stock had no buybacks been made. It funded the buybacks primarily from net earnings. The risk manager had approximately 10.8 million shares outstanding as of March 31. As of this writing, shares were trading at $58.49.
As CorVel previously announced, its board also has authorized a two-for-one stock split that will be payable on June 26 to holders of record on June 12. The buyback numbers noted above are pre-split.
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