NEW YORK The Digitas board of directors has approved a $20 million stock repurchase program under which the company is authorized to buy shares of its common stock in the open market or in private transactions over an 18-month period. The program commences on Dec. 13 and expires on June 30, 2005.
The company's current stock repurchase program, which started in June 2002, expires on Dec. 12 [IQ Daily Briefing, June 13, 2002].
Digitas stock [DTAS] closed on the Nasdaq today at $8.40, down four cents. Its 52-week high is $9.32 and 52-week low is $2.47.
At its current rate, the Boston-based digital and direct-marketing shop could buy some 2.4 million shares under the stock repurchase plan. There are about 62 million shares of outstanding common stock.
"Digitas is well positioned to benefit from the economic recovery and the trend toward more direct forms of marketing. This gives us confidence in our ability to generate cash, and we want to maintain the flexibility to reinvest in the company," said Digitas chairman and CEO David Kenny.