Amedisys Inc., a Baton Rouge-based home nursing company, may buy back up to $75 million worth of its shares during the next year.
The company’s board of directors authorized the stock repurchase program on Wednesday.
President and Chief Executive Paul B. Kusserow said the announcement reflects the board and management’s confidence in the company’s long-term plan.
Stock buybacks often occur when management feels the company’s shares are undervalued. By reducing the number of shares outstanding, a firm increases earnings per share, which often lifts the value of the remaining shares.
In the last six months, Amedisys shares have jumped from a little less than $28 per share to more than $41, an increase of nearly 50 percent.