Daktronics (DAKT) Approves $40M Stock Buyback Program

In a concerted effort to return cash to shareholders, leading electronic display manufacturer Daktronics Inc. (NASDAQ:DAKT) authorized a share repurchase program to buy $40 million worth of stocks over a period of time through the open market or through negotiated transactions.

The share buyback program is an extension of the strategic objective of the company to reward its shareholders with risk-adjusted returns. At the same time, the company declared a regular quarterly dividend of 6 cents a share and a special dividend of 4 cents per share. Both the dividends are payable on Jul 8, 2016 to stockholders of record as on Jun 27.

Reece Kurtenbach, Chairman, President and Chief Executive Officer of the company, remarked: "This quarter, we changed to a regular and special dividend structure to allow for flexibility in cash allocations between our dividend program, the just-announced stock repurchase program, design and development investments, and other business opportunities."

Headquartered in Brookings, SD, Daktronics is the leading designer and manufacturer of LED message displays worldwide. Since its inception in 1968, the company has created a niche market for large screen video displays, electronic scoreboards, LED text and graphics displays, and related control systems.

The business growth of the company is primarily driven by the market demand for large format electronic displays that showcase the depth and quality of products, including related control systems, service offerings and the technology serving these markets. This growth, however, is partially offset by a decline in product prices due to increasing competition from other players in the industry.

Daktronics currently has a Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the industry include Research Frontiers Inc. (NASDAQ:REFR) , Universal Electronics Inc. (NASDAQ:UEIC) and Jason Industries, Inc. (NASDAQ:JASN) , each carrying a Zacks Rank #2 (Buy).