Top NASDAQ Performer Cabot Microelectronics Corporation (CCMP), Stock Soars after Company Announces New Capital Management Initiative to Return Value to Shareholders
(December 13, 2011) Shares of Cabot Microelectronics Corporation (NASDAQ: CCMP), an Aurora, Illinois-based company, are soaring in trading today. At last check, the Cabot Microelectronics stock was trading 20.52% higher at $48.45 on above average volume of 475,090.
Cabot Microelectronics shares are soaring in trading today after the company announced new capital management initiative to return value to shareholders. The company said that its Board of Directors has determined to pursue a major new capital management initiative, which includes a leverage recapitalization, intended to more efficiently allocate capital and provide additional value to shareholders.
Under the new initiative, the company plans to pay a special cash dividend of $15 per share to its shareholders during the first quarter of calendar year 2012. The company expects to fund half of the dividend from its cash balance. The remaining amount is likely to be funded with new debt. Additionally, the company’s Board has also authorized an increase in the existing share buyback program to $150 million.
William Noglows, Chairman and CEO of Cabot Microelectronics, said that since Cabot Microelectronics’ inception as a public company more than eleven years ago, the company has maintained solid revenue growth and a consistent level of profitability and have made strategic investments to grow its business whole also generating free cash flow.
About Cabot Microelectronics Corporation: Cabot Microelectronics Corporation supplies chemical mechanical planarization (CMP) polishing slurries.
- The Cabot Microelectronics stock has a 52-week range of $32.52-$52.69.
- The stock trades on a daily average volume of 131,361.
- The stock is currently trading above its 50-day and 200-day moving averages, which is a bullish signal.
- The stock’s MACD has crossed the signal line on the upside and is also above the zero-line, which are strong bullish signals.
Cabot Microelectronics announced a new capital management initiative to return value to shareholders. The company’s shares are soaring following the announcement.