Intuitive Surgical boosts buyback to about $1.5B
Robotic surgery device maker Intuitive Surgical Inc. is increasing its current share buyback by $779 million to approximately $1.5 billion and is entering an accelerated repurchase program with Goldman Sachs.
President and CEO Dr. Gary Guthart said in a statement on Monday that the increase to its repurchase program and the accelerated buyback shows Intuitive Surgical's confidence in its da Vinci surgical system. The da Vinci system lets surgeons perform operations through a few small incisions, according to the company's website.
The Sunnyvale, Calif. company had about $721 million remaining from prior repurchase programs.
The accelerated stock buyback with Goldman Sachs is part of Intuitive Surgical's $1.5 billion program. The company will repurchase $500 million of its stock from Goldman Sachs, with the majority of those shares to be received and retired within two weeks. If any shares are remaining after that, they are expected to be received and retired by Oct. 29, but they could be received earlier if the accelerated buyback ends sooner.
Intuitive Surgical anticipates funding the buyback with cash and investments. It had about $3 billion of cash, cash equivalents and investments as of June 30.
Shares rose $8.05, or 2.1 percent, to $390.34 in morning trading Monday after rising as high as $401 earlier in the session. Its shares are up 9 percent from its 52-week low of $357.02 set July 19. It traded as high as $585.67 in February.