Lake Success, N.Y. — DealerTrack Holdings Inc. has announced that its board of directors has authorized a stock repurchase program under which the company may spend up to $75 million to repurchase its common stock.
According to company estimates, DealerTrack had approximately 42.6 million shares of common stock outstanding as of February 1, 2008. These securities typically offer investors the right to vote on matters such as the selection of board members and matters of company policy. The company reports that the program will expire on or before March 31, 2009.
“Our Board’s decision to authorize this repurchase program reflects our ongoing commitment to the enhancement of shareholder value as well as our confidence that the current market price levels do not appropriately reflect the intrinsic value of the company,” said Mark O’Neil, chairman and CEO of DealerTrack. “We believe that our strong financial position with more than $220 million in cash as of December 31, 2007 will allow us to implement this program prudently, while continuing to invest in the growth of our business."