U-Haul Board Says Stock Is Cheap, Authorizes $350 Million Buyback

U-Haul Holding Co (NYSE:UHAL.B) is one of billionaire David Abrams’ top stock picks with upside potential. U-Haul shares have gained more than 32% year-to-date, and analysts expect them to keep rising. Some 44 hedge funds have positions on U-Haul stock.

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On June 26, U-Haul Holding Co (NYSE:UHAL.B) distributed a quarterly cash dividend of $0.05 per share. There is more to come in terms of shareholder returns for U-Haul investors. The company’s board has determined that the stock is cheap and seized on the opportunity to acquire it at a discount. Consequently, the board has approved a $350 million share repurchase program.

U-Haul CFO Jason Berg described the stock buyback program as a wise allocation of capital considering where the company stands right now. According to the finance chief, at this point the company has invested enough in fleet, storage capacity, and other aspects of the business. This allows the company to slow capital spending to free up funds for the buyback program.

U-Haul exited the March quarter with more than $1 billion in cash and cash equivalents.

U-Haul Holding Co (NYSE:UHAL.B) is a moving and storage provider operating in the US and Canada. It rents out trucks, cargo vans, and utility trailers for do-it-yourself household moving. The company operates a network of self-storage facilities and offers insurance products.

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