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CACI Rises 5% on New $500M Share Repurchase Authorization

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Shares of CACI International (CACI - Free Report) gained 5.2% on Thursday after the IT applications and infrastructure provider announced its plan to buy back $500 million worth of the company’s common stock this year. The company plans to buy back its common stocks through the accelerated repurchase program.

CACI’s financial strength enables it to continue with the buyback program. At the end of second-quarter fiscal 2021, the company’s cash and short-term investments were $102.1 million. In the first half of fiscal 2021, it generated a cash flow of $382.3 million from operational activities.

The company’s share-repurchase policies are anticipated to boost investor confidence. CACI’s strategy to return wealth to shareholders highlights its growth potential and stable liquidity position.

We believe that apart from strategic investments, a continued focus on such shareholder-friendly initiatives will further boost the company’s shares. Notably, CACI has appreciated 21.7% over the past year.

The company is benefiting from business wins and organic expansions. It has a large pipeline of new projects and continues to win deals at regular intervals. Furthermore, having the government as a big client lends stability to the business and moderates revenue fluctuations.

Further, this Zacks Rank #3 (Hold) company is well-positioned to benefit from an uptick in cash flows, government contracts and strategic partnerships. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other companies, which have a consistent record of returning value through share repurchases and dividend payments, are Apple (AAPL - Free Report) , Cisco (CSCO - Free Report) and NVIDIA (NVDA - Free Report) .

We believe, apart from enhancing shareholder returns, these initiatives raise the market value of the stock. Through share repurchases and dividend payouts, companies boost investor confidence, persuading them to either buy or hold the scrip.

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