Herald staff And Associated Press
Dozens of companies, including Goodrich Corp. and EverTrust Financial Group, announced plans Monday to buy back their shares, under recently loosened Securities and Exchange Commission rules aimed at steadying the markets after last week’s terrorist attacks.
The SEC used its emergency powers for the first time Friday, waiving regulations to encourage buying for the reopening of stock markets Monday after an extraordinary four-session shutdown. The waivers, in effect for up to 10 days, allow buybacks without customary restrictions regarding the volume of shares and timing of purchases.
The companies quickly took advantage, announcing buybacks to help counter any panicked sell-offs and prop their share price.
Goodrich Corp. announced plans to buy back up to $300 million worth of shares, in a move to "demonstrate the company’s confidence in the fundamental attractiveness and value of its businesses," officials said.
"The tragic events of last week and the possible impact on the U.S. stock market as it reopens today warrant a proactive share repurchase program," said David Burner, Goodrich’s chairman and chief executive officer. "The share repurchase program is appropriate in light of current circumstances."
Goodrich shares fell $5.62 — or 18 percent — to close at $24.92 Monday, part of a broad sell-off in aerospace stocks.
Everett-based EverTrust will buy back up to 10 percent of its outstanding common stock — about 670,000 shares — the company announced Monday. This will supercede a stock repurchase plan announced in July.
EverTrust shares closed the day’s trading at $13.66, down 74 cents, or 5.1 percent.
Under the looser restrictions, companies may now buy back their own stock in the first and last 30 minutes of the trading session, activity that ordinarily is banned to avoid market manipulation.
Companies also may increase daily purchases of their stock to 100 percent of the previous month’s daily average volume, up from 25 percent. And company officers and directors may buy stock no matter when they last traded — previously, these insiders had to return the profits if they traded more frequently than every six months.
Other companies announcing major buybacks:
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