J.P. Morgan Reports On Blackboard's $100 Million Share Repurchase

In a report published by J.P. Morgan, Blackboard's (NASDAQ: BBBB) $100 million share repurchase send a signal.

J.P. Morgan reported that, after the close yesterday, Blackboard announced a $100M share repurchase program that we believe sends a clear statement about the management/board view of the recent stock price action. “Stock is down 10% since the 10K and resignation letter of board member Dr. William James Raduchel on a number of concerns. This compares to down 2.7% for the S&P 500. We believe the pullback is an attractive entry point and it appears management/board agrees as this is the first share repurchase program in company history. At current price levels we see $0.07-0.10 of accretion in 2011 and as much as $0.18 in 2012 from the repurchase. Reiterate OW.”

Blackboard closed yesterday at $35.01.