The board of directors for Baton Rouge-based home health and hospice firm Amedisys has approved a stock buyback plan, by which the company can opt to repurchase up to $75 million of its outstanding common stock over the next year.
“Amedisys is committed to a disciplined capital allocation strategy,” says Amedisys President and CEO Paul Kusserow in a prepared statement. “This announcement reflects the continued confidence of the Board and our management team in our long-term plan. While we will continue to prioritize investing in accretive acquisitions, our current capital position and strong free cash flow profile will adequately support reinvesting in our business while preserving the option to return capital to shareholders.”
Although the announcement from Amedisys today does not include any reasons for why the company is pursuing a stock buyback option, it’s a move commonly made by companies that feel their stock is undervalued. Amedisys shares trade on the NASDAQ exchange under the AMED symbol. As of this afternoon’s deadline, shares were trading for $41.83, up $0.47 per share, or about 1.1%. In mid-April, shares were selling for about $26, marking a roughly 40% rise in price over the past five months.
In late July, Amedisys confirmed plans to move 33 top employees from its Baton Rouge headquarters to a new office in Nashville, Tennessee. The company had been considering a new office in either New Orleans or Nashville. Baton Rouge remains the company’s headquarters.
