Corona-based Monster Beverage Corp., the maker of Monster Energy drinks, will be snapping up its own shares in a $250 million stock buyback program announced today.
According to the company, which has a market capitalization of nearly $8 billion, the repurchases follow a $500 buyback of outstanding common stock that concluded recently.
Monster's board of directors did not disclose the reasons for the second round of acquisitions, but companies generally initiate buybacks to reduce the supply of shares on the open market, making available shares more valuable.
Monster's stock, trading above $44 for the last two weeks, has largely recovered following some negative press arising from a lawsuit filed against the company in Riverside County.
The suit was brought by the parents of a 14-year-old Maryland girl who died after consuming two 24-oz. Monster Energy drinks in a 24-hour period. Lawyers for the plaintiffs allege the child's heart attack was a direct result of the contents of the drinks. The company denies the allegation.