Harley-Davidson Inc. rose the most in almost eight months after the motorcycle maker’s board authorized the repurchase of 15 million more of its shares, almost doubling its buyback plans.
The authorization is in addition to 15.9 million shares remaining under a repurchase plan approved in February 2014, the Milwaukee-based company said in a regulatory filing Wednesday. Harley said it intends to take on $750 million in long-term debt in the third quarter for buybacks. The new program is equal to 7.2 percent of the stock outstanding.
“This is a pretty clear statement that the company is willing to finally put more cash to work,” Joseph Spak, an RBC Capital Markets analyst, said in a note to investors. He rates the shares outperform.
Harley climbed 4.1 percent to $59.01 at the close in New York, the biggest gain since Oct. 21 and the second-largest daily advance in the Standard & Poor’s 500 Index. The stock has fallen 10 percent this year.