Xero (OTCMKTS:XROLF) to Repurchase $684.93 million in Outstanding Stock

Xero (OTCMKTS:XROLF) declared that its board has authorized a stock buyback program on Wednesday, November 11th, RTT News reports. The company plans to repurchase $684.93 million in outstanding shares. This repurchase authorization allows the company to purchase up to 8.5% of its shares through open market purchases. Stock repurchase programs are usually a sign that the company’s management believes its shares are undervalued.

Xero Stock Up 4.7%

Xero stock traded up $2.22 during mid-day trading on Wednesday, reaching $49.52. 20,994 shares of the stock traded hands, compared to its average volume of 554. The business’s 50-day moving average is $45.19 and its 200-day moving average is $52.21. Xero has a 12-month low of $38.85 and a 12-month high of $83.08.

Wall Street Analyst Weigh In

Separately, Royal Bank Of Canada downgraded Xero from an “outperform” rating to a “sector perform” rating in a report on Monday, July 27th. One analyst has rated the stock with a Hold rating. According to MarketBeat.com, the stock has a consensus rating of “Hold”.

Xero Company Profile

Xero Limited is a New Zealand technology company that provides cloud-based accounting and business-management software, primarily for small businesses and the accountants and bookkeepers who support them. Founded in Wellington in 2006 by Rod Drury, the company has grown from a New Zealand software provider into an international business. Xero’s platform helps customers manage tasks such as invoicing, bank reconciliation, expense tracking, payroll, payments and financial reporting. It also connects with a range of third-party business applications, allowing customers to tailor the software to their needs.