• Highwoods Properties (NYSE:HIW) has authorized a $250 million share repurchase program.
• The company plans to fund the buybacks through sales of non core assets in its portfolio.
• The move reflects a shift in how Highwoods is choosing to allocate capital between assets and its own shares.

Highwoods Properties enters this announcement with its shares recently closing at $23.74. The stock is up 2.4% over the past week and 11.7% over the past month, while the year to date return stands at a decline of 8.3%. Over the past 3 years, NYSE:HIW has a return of 34.4%.

The new repurchase authorization gives management flexibility to buy back stock as non core asset sales are completed. Readers may want to watch how quickly dispositions occur, how much of the $250 million is used, and whether there are any changes in overall portfolio mix as Highwoods reallocates capital.

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Quick Assessment

• ✅ Price vs Analyst Target: At US$23.74 versus a US$26.22 analyst target, the price sits about 9% below consensus.
• ✅ Simply Wall St Valuation: Shares are described as trading 36.3% below estimated fair value.
• ✅ Recent Momentum: The stock has returned about 11.7% over the last 30 days.

There is only one way to know the right time to buy, sell or hold Highwoods Properties. Head to Simply Wall St's company report for the latest analysis of Highwoods Properties's fair value.

Key Considerations

• 📊 A US$250m buyback funded by non core asset sales indicates that management is prioritizing owning more of the company instead of holding certain properties.
• 📊 Watch the pace and pricing of asset disposals, actual buyback volumes, and how the program interacts with the current 8.42% dividend.
• ⚠️ Interest payments are not well covered by earnings, so monitor leverage and debt servicing as cash is recycled into repurchases.

Dig Deeper

For the full picture, including more risks and rewards, check out the complete Highwoods Properties analysis. Alternatively, you can visit the community page for Highwoods Properties to see how other investors believe this latest news will impact the company's narrative.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.