The board of Ryder System has approved the repurchase of up to 2 million shares of its common stock. The truck leasing company said it anticipates starting to make the stock repurchases under the program early next year.
Companies sometimes increase stock repurchases in an effort to defend the share price. With fewer shares on the market, everyone holding the company’s stock could get a boost.
But Ryder System said the buyback program will help offset the dilutive impact of shares issued under its various employee compensation plans. The company had 53.1 million outstanding shares as of Nov. 30.
Shares of Ryder System, which is based in Miami, climbed $2.07, or 3.1 percent, to close at $69.76 on Monday. The stock is up 40 percent so far this year.
– Associated Press