EMC to Buy Back $2BN of Its Own Stock
Storage giant EMC said in a 8-K filing with the U.S. Securities and Exchange Commission that it plans on buying back $2 billion worth of shares in fiscal year 2011. This expands its existing plan of acquiring $1.5 billion in stock this year by $500 million.
From the filing:
“Item 8.01. Other Events.
On August 18, 2011, the Finance Committee of the Board of Directors of EMC Corporation (the “Company”) authorized the Company to repurchase up to $2 billion of the Company’s stock in 2011. This represents an increase from the prior authorization of $1.5 billion.”
This update follows shortly after a few firms changed their ratings on the company. Barclays Capital cut its price target from $37.00 to $32.00 and now has an overweight rating on EMC’s shares, while Credit Suisse lowered the price to $27 and now has a buy rating.
EMC stands at $21.55 in late trading.
The company had another update today. It announced that Heritage Auctions, the third largest auction house in the world, has migrated to the company’s Symmetri VMAXe storage platform in order to host its SQL Server-powered site and auction applications. Heritage, which claims to be the largest collectibles auctioneer in the world, said in a press release that the switch from Xiotech to VMAXe took two hours. The deployment it’s now leveraging packs 1.14 petabytes of tiered storage, 15,000 RPM Fibre Channel drives and 7,200 RPM SATA drives, along with an Isilon system configured to scale to up to 15 petabytes.
Back to the Wall Street angle, A couple of other tech companies had buybacks recently too. Dell has bought back $1.6 billion of a planned $2 billion batch of shares while HP announced plans to buy back an addition $10 billion of its own stock last month.
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