British American Tobacco Announces a Share Buyback. Here's What Investors Need to Know.

Tobacco and nicotine products company British American Tobacco (BTI 0.48%) recently said it had repurchased 150,000 shares of stock at an average price of about $32. Companies repurchase their stock all the time; once purchased, it's taken out of circulation, which reduces the number of shares outstanding. Many companies routinely repurchase shares, regardless of the stock's valuation. However, prudent management teams will consider the stock's valuation to ensure the repurchases are as effective as possibl ...