Philip Morris Begins Buying Back $1.5 Billion of Its Stock

Philip Morris Cos. announced Wednesday that it is beginning a stock buyback program under which the food and tobacco giant will repurchase $1.5 billion worth of its shares.

Philip Morris stock closed at $41.875, up 37.5 cents a share in New York Stock Exchange composite trading Wednesday. At that price, the company would repurchase more than 35.8 million, or 2.4%, of its 928 million outstanding shares.

The company said it would purchase the shares on the open market from time to time. It did not set a deadline for completing the buyback.

Many corporations periodically announce share buyback plans, often as a defensive precaution or as a method of raising the price of their stock.

Analysts said the announcement of the buyback, which came several months earlier than many had anticipated, is indicative of Philip Morris’ dominance in the tobacco industry.