Verisk Fighting Option Dilution With Shares Buybacks… Already (VRSK, BRK-A)

Verisk Analytics, Inc. (NASDAQ:VRSK) has only been public since the end of 2009 and its stock has risen from under $28 to about $40 during that time period.  So why is the risk information provider started conducting share buybacks?  The company announced that it has “authorized an incremental $300 million of share repurchases under its share repurchase program.”

Does it not matter that Berkshire Hathaway Inc. (NYSE: BRK-A) is a relatively new (and growing) shareholder now? The company is noting a strong financial position that generates significant free cash flow while maintaining low leverage.  It also claims enough financial flexibility to grow and to explore acquisitions.

Part of the issue is that it is just like a brokerage firm or a technology company because it has to fight stock option dilution.  That is part of the cost of doing business and often what it takes to keep key personnel in place through time.

Shares are up 0.3% at $39.88 and its 52-week range is $30.76 to $40.52.