Directors of St. Ives Laboratories authorized the company during the next year to repurchase up to 250,000, or 3.5%, of its 7.1 million common shares outstanding.
St. Ives, a Chatsworth-based maker of shampoos and other personal-care products, joins scores of other U.S. companies that have announced stock-buyback plans to bolster their stock prices following the Oct. 19 market crash.
The crash came three months after St. Ives went public at $13 per share.
St. Ives said its stock's price, which was $6.75 at the close of trading Monday, is undervalued and thus represents an attractive investment. St. Ives also said the repurchased shares would be used for its employees' stock option plan.