T. Rowe Price Group, Inc.’s (TROW) board of directors has approved an increase in the company’s share repurchase authorization by 15 million. This reflects the company’s capital strength.
The latest approval enhances the total unutilized authorization to 20.9 million shares.
During the first nine months of 2014, the company repurchased 3.9 million shares out of which 3.2 million were repurchased in the third quarter itself. The total amount spent on repurchasing is $307.3 million, year to date.
As of Sep 30, 2014, T. Rowe Price’s cash from operating activities amounted to $1216.1 million, up 5% from the previous year; whereas cash and cash equivalents totaled $1644.5 million. Also, the company continues to remain debt free with ample liquidity, including a healthy cash position and investment holdings of $3.5 billion.
This not only enables the company to undertake shareholder-friendly moves, but also helps it enhance shareholder value.
Based in Baltimore, MD, T. Rowe Price Group offers a full range of investment strategies to institutions, financial intermediaries and individuals. As of Sep 30, 2014, the company had $731.2 billion in assets and operates across 12 countries with over 5800 associates.
T. Rowe Price currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the finance space include KKR & Co LP (KKR), Monroe Capital (MRCC) and Fidelity Southern (LION), each sporting a Zacks Rank #1 (Strong Buy).
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