Physicians Formula shares rise on buyback offer
WASHINGTON --Shares of Physicians Formula Holdings rose Friday after the company said it would buy back up to $10 million in shares.
Company shares rose 51 cents, or 8.6 percent, to end at $6.45. The stock has lost nearly half its value in the year to date.
The cosmetics-maker said Thursday it had made an amendment to its credit agreement with Union Bank of California NA to help fund the repurchase program. Physicians Formula had about 14.1 million shares outstanding as of Aug. 8.
Citigroup analyst Wendy Nicholson wrote that the buyback "serves as a signal to investors that the fundamentals" of the Azusa, Ariz., company are intact.
In a note Thursday, Nicholson reiterated a "Buy" rating and a $12 target price on the stock. 