Mod-Pac Corp. is expanding the stock buyback program by nearly 190,000 shares, giving the Buffalo specialty printing company the ability to repurchase almost 6 percent of its outstanding stock.
Mod-Pac had repurchased more than 182,500 shares since May under a 200,000-share expansion of its buyback program that the company announced this spring. The latest extension gives the company, which has been buying back its shares since last August, the authorization to make additional purchases of up to 200,000 shares.
Mod-Pac had been pressured by some shareholders to step up its share repurchases as a way of returning capital to its stockholders. The company's shares, which closed at $5.85 Tuesday, are trading at a 23 percent discount to their book value of $7.61 per share.
The increase "demonstrates our continued confidence in the strength and growth prospects of our business and underscores our commitment to deliver long-term value to our shareholders," Daniel G. Keane, Mod-Pac's president and chief executive officer, said in a statement.