BellRing Brands, Inc. (NYSE: BRBR) saw its stock soar 5.04% in pre-market trading on Thursday following the announcement of a new $600 million share repurchase authorization. This significant move comes as the company aims to boost shareholder value through an expanded buyback program.
The St. Louis-based maker of protein drinks and nutrition products revealed that its Board of Directors has approved the new share repurchase plan, which will be effective over the next two years starting November 19, 2025. This new authorization replaces the previous $400 million program launched in September, under which the company had already repurchased approximately $123 million worth of stock.
Investors reacted positively to the news, driving the stock price higher. Share buybacks are often viewed favorably by the market as they reduce the number of outstanding shares, potentially increasing earnings per share and signaling management's confidence in the company's financial health and future prospects. The size of the new authorization, which represents a significant portion of BellRing's market capitalization of over $3.3 billion, appears to have particularly impressed investors.
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