TD Ameritrade Holding Corp.'s announced Monday that it has decided to repurchase up to 30 million shares.
The Omaha, Neb., based online brokerage company, which is suddenly flush with cash, said that it thinks it is "an attractive" way to use money in the current economic climate.
The company’s shares have declined 15% this year to $16.44 as of Friday’s close. In 2008, they traded as high as $23.
TD Ameritrade has 576 million shares outstanding.
Analysts said other companies could follow suit and use cash to buy back stock, which remains undervalued.
In its fiscal third quarter, TD Ameritrade reported that earnings rose 5.2%, beating analyst estimates.
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