So you want to buy shares in Sear Holdings (NASDAQ:SHLD) but aren't sure if this is a good price level? Apparently, Eddie Lampert feels the current price is just fine.
Between May 5 and May 25 the share count was reduced from 153.7 million and 152,492,175 shares according to today's 10Q. That means that Lampert bought back 1.2 million shares at prices ranging from ranged from $175 to $182. This is the first meaningful repurchase of shares in six months, as in the most recent quarter Sears bought back no stock and in the quarter before that it repurchased only 82,000 shares.
Accordig to Jim Cramer:
That means the lowest price Sears could have paid was $175, the highest price $182.52. Again, while we don't know the average price paid for those 1.2 million shares, we do know that it is higher than the $164.91 paid in the fourth quarter. That's very important. Sears has a ton of cash, more than $3 billion. At this pace, if Eddie miraculously paid the low for all of that stock, he would go through the part of the $600 million buyback authorization that remained as of the press release in about 60 days. When that's gone, I believe he will authorize another one.
SHLD 1-yr chart: