MasTec Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of MasTech (NYS: MTZ) jumped 10% for an instant this morning after the infrastructure construction company's board of directors agreed to a share buyback program. Shares settled to a more modest 6% gain later in the day.
So what: The board approved a buyback program that is up to $75 million in shares in the next 12 months. This expands on an existing $75 million buyback program for a total of $150 million in potential shares to be purchased by the company.
Now what: Considering the company's market cap is currently $1.3 billion, the total buyback authorization amounts to more than 10% of the company. That's an awful lot and is a very bullish sign that management thinks the shares are undervalued. I see the company's current 10 P/E ratio and the buybacks as enough for me to be bullish on the company's future.
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At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.