Why Party City Holdco Inc. Stock Jumped Today

Shares of Party City Holdco Inc. (NYSE: PRTY) surged today on news that the company was buying back close to 20 million shares of common stock. Shareholders unsurprisingly celebrated the move, sending the stock up 12.5% as of 11:47 a.m. EST.

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Party City said it would acquire 19,841,694 shares for $242 million from the Advent-Party City Acquisition Limited Partnership, which constitutes all of Advent's shares in the company. Management said it would fund the share repurchase with borrowings from a revolving credit facility.

Source: Fool.com