REDWOOD CITY, Calif. - Check Point Software Technologies Ltd. (NASDAQ:CHKP), a global cyber security solutions provider, has announced the expansion of its share repurchase program by $2.0 billion. The company's board of directors authorized the increase, which builds on the current repurchase plan set to conclude in the fourth quarter of 2024.
Since the inception of the share repurchase initiative, Check Point has bought back approximately 218 million shares, amounting to a total of roughly $15 billion. As of June 30, 2024, the company had about 111 million ordinary shares outstanding.
The expanded repurchase program will allow Check Point to continue acquiring shares through various means, including open market transactions, privately negotiated deals, or other methods compliant with securities laws and regulations. The timing and volume of buybacks will be influenced by market conditions, share prices, and other factors. Check Point may also utilize a Rule 10b5-1 plan, aligning with the U.S. Securities Exchange Act, to facilitate purchases.
The repurchase program does not commit Check Point to a specific number of shares and can be modified, paused, or terminated at any time. The company plans to fund the repurchases from its available working capital.
Check Point, known for its AI-powered, cloud-delivered cyber security platform, serves over 100,000 organizations worldwide. The company's Infinity Platform is reputed for high catch rates and proactive threat anticipation, encompassing products like Check Point Harmony, CloudGuard, Quantum (NASDAQ:QMCO), and Infinity Core Services for collaborative security operations.
InvestingPro Insights
Check Point Software Technologies Ltd. (NASDAQ:CHKP) has recently enhanced its share repurchase program, reflecting a confident stance by management regarding the company's financial health and future prospects. The InvestingPro Tips highlight two critical facets of this confidence: Check Point's aggressive share buyback strategy and its robust financial position, evidenced by holding more cash than debt.
The InvestingPro Data showcases Check Point's solid financial metrics, with a market capitalization of $19.23 billion and an impressive gross profit margin of 89.03% over the last twelve months as of Q1 2024. These figures are a testament to the company's efficiency and its ability to maintain profitability. Additionally, the Price to Earnings (P/E) ratio stands at 22.66, indicating investor confidence in the company's earnings potential, although the ratio suggests a premium valuation relative to near-term earnings growth.
Investors might also be intrigued by the fact that Check Point trades close to its 52-week high, with the price at 99.64% of this peak. This could be a sign of strong market sentiment towards the company, aligning with the share repurchase program's goal of enhancing shareholder value.
For readers interested in a deeper dive into Check Point's financial health and future outlook, there are more InvestingPro Tips available, including insights into earnings revisions by analysts and the company's trading patterns. To explore these further, visit https://www.investing.com/pro/CHKP and remember to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. This exclusive offer provides access to a total of 13 additional InvestingPro Tips, which could be invaluable for making informed investment decisions.
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