Advanced Energy doubles volume of share-buyback program

FORT COLLINS — Advanced Energy Industries Inc. (Nasdaq: AEIS) is moving to double its stock-buyback target to $50 million in total.

The Fort Collins power controller designer upped the $24.9 million in buybacks it approved in September 2015 to $50 million and removed a previous expiration date, according to filings made Friday with the U.S. Securities and Exchange Commission.

The company’s board did not specifically say when it plans to begin rebuying stock or set a minimum amount of stock to buy back, according to the filing, and reserved the right to end the program at any time.

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Public companies use stock buybacks to consolidate ownership in itself, pay off shareholders for their investments and raise the value of their outstanding stock by lowering its supply against demand.

If Advanced Energy repurchased stock to its $50 million cap at Friday’s closing price of $70.92 per share, it would repurchase 705,019 shares. That amounts to just less than 2 percent of the company’s shares outstanding.

Financial institutions currently hold 99.04 percent of Advanced Energy stock, while company insiders hold 0.96 percent, according to data from Seeking Alpha.

Advanced Energy stock opened eight-tenths of a percent higher Monday and closed the day’s trading at $71.30 per share.