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JNPR Stock: Juniper Plans $2B Buyback, Shareholder Dividends

Nokia considers buying Junip


Amid news that Nokia plans to purchase Juniper (JNPR), the company has announced a more than $2 billion buyback plan — leading JNPR stock to increase pre-market by 2%.

juniper-networks-jnpr-stockJuniper will initiate a $0.10/share quarterly cash dividend in Q3 of this year — with the intention of growing its payout over the next three years, via a combination of share repurchases and dividends.

The company said it will pay out more than $2 billion on buybacks through Q1 2015. (via SeekingAlpha)

As part of buyback efforts, Juniper plans to enter into a $1.2B accelerated share repurchase agreement. Between dividends and buybacks, the company plans to return at least $3B over the next three years.

The overall plan is to create a new “One-Juniper” corporate structure with the goal of attaining a yield of $160 million a year in  savings by 2015.

Reuters reports that the hedge fund said the “undervalued” stock could be worth $35-$40 “if Juniper implemented its suggestions and focused on revamping its core business of making routers and switches for mobile carriers such as Verizon Communications Inc and AT&T Inc.”

The decision comes amid rumors that Nokia is planning to purchase the company.

Reuters reports that Finland’s Nokia is considering buying the U.S.-based Juniper in order to merge into its telecommunications network gear business.

Juniper has a stock market value of $13.7 billion, making it a major takeover target for Nokia, but Manager Magazin said Nokia could use Juniper’s $3.1 billion cash to help finance the purchase. NSN will be Nokia’s primary operation after the sale of its devices and services business to Microsoft in a 5.4 billion euro ($7.4 billion) deal, which is expected to close by the end of next month.

Juniper Networks designs, develops, and sells products and services that together provide its customers with network infrastructure.

Article printed from InvestorPlace Media,

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