Thermo Fisher To Buy Back as Much as $4 Billion of Shares

— Jeff Ward, Lehigh Valley News Briefs

Thermo Fisher Scientific, a maker of laboratory and medical equipment, plans to buy back as much as $4 billion of its shares.

The Waltham, Massachusetts-based company has operations in the Lehigh Valley. Thermo (NYSE:TMO) is a global business. It announced the buyback Friday.

Buybacks can be popular with investors because when the number of shares outstanding is reduced, earnings are spread over fewer shares. The purchases also create demand for stock.

The new program has no expiration date, and in part replaces an older buyback. About $1 billion was left on that program.

Shares of Thermo Fisher traded at $513.08 at the close on Friday. The stock has been dropping since September, when it reached $627.88.

— Disclosure: I own shares in Thermo Fisher as part of a buy-and-hold strategy. I do not day-trade or invest in derivatives.