We are eating our own cooking, Herbalife’s Board approved $250M buyback program, stock up 5%

Herbalife Ltd. (NYSE: HLF) shares rose 5% Tuesday following the company’s announcement of a new $250 million share repurchase program authorized by its Board of Directors.

The buyback program will run over three years and allows the company to repurchase its outstanding common stock through various methods including open market purchases, privately negotiated transactions, and accelerated share repurchase agreements.

The company stated the authorization reflects confidence in its business strategy, financial outlook, and ability to generate sustainable free cash flow.

“We believe our strong financial profile and free cash flow generation provide us with significant flexibility to invest in the business, maintain a strong balance sheet and return capital to shareholders,” said John DeSimone, Chief Financial Officer.

DeSimone added that given the company’s confidence in its long-term outlook and current share valuation, repurchasing stock represents a compelling use of capital and an opportunity to enhance long-term shareholder returns.