Dell Inc. (NASDAQ:DELL) said Tuesday that its board has authorized a $5 billion stock buyback, in addition to the remaining $2.16 billion from the company's earlier commitment to repurchase shares.
In the fiscal second quarter, the PC behemoth repurchased $1.1 billion of its shares. Dell said the timing and the size of the share purchases will be made based on a number of factors including price and market conditions.
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Chief financial officer Brian Gladden boasted that the companys cost-cutting measures have more than doubled the percentage of capital Dell allocated to the buyback program, while making continued investments in other areas such as research and development and capital expenditures.
"With this additional commitment from the Board, we have the flexibility to continue making opportunistic share repurchases as a key element of our disciplined capital allocation strategy," said Gladden.
Shares of Dell rose 19 cents or 1.34% in Tuesdays session to close the day at $14.38 a share. The stock was up another 33 cents, or 2.3%, in after-hours trading.