Why Windstream Holdings Stock Fell 45% in August
Shares of Windstream Holdings (NASDAQ: WIN) fell 45.4% in August 2017, according to data from S&P Global Market Intelligence. The regional telecom services provider reported reasonably solid second-quarter results early in the month but also eliminated its once-attractive dividend policy on the same day.
Citing undervalued share prices and a need to pay down debt balances, Windstream slashed its dividend payouts all the way down to zero and started up a $90 million share-buyback program.
"This is really the belief that at this point the equity is undervalued, and it has been," said CEO Tony Thomas in a conference call with Wall Street analysts. "We're confident that this is the right capital allocation policy for the company."
Source: Fool.com
