LAUREL, MISS. — Sanderson Farms Inc.’s board of directors expanded its stock repurchase program to 1 million shares on Oct. 22. In April 2008, they authorized the repurchase of up to 225,000 shares.
Shares may be purchased from time to time at prevailing prices in open market transactions or in negotiated purchases, subject to market conditions, share price and other considerations, under the company’s stock repurchase program. Sanderson Farms currently has approximately 20.3 million shares of common stock outstanding.
"The expansion of our stock repurchase program highlights the Board’s confidence in the future of Sanderson Farms," said Joe F. Sanderson Jr., chairman and chief executive officer of Sanderson Farms. "We plan to use our expanded stock repurchase program to offset shares issued through our equity compensation programs. We believe this program represents a good use of corporate funds while minimizing potential dilution related to our equity compensation programs."
Sanderson Farms has repurchased approximately 13,000 shares under the previously authorized stock repurchase program. The newly authorized program will provide it with the capacity to purchase approximately 987,000 shares. The stock repurchase program is authorized until April 24, 2012.