The Pro Medicus Limited (ASX: PME) share price has been a strong performer on Thursday.
In early trade, the health imaging company's shares were up as much as 5% to $43.44.
The Pro Medicus share price has pulled back a touch since then but remains up 3% to $42.61 currently.
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Why is the Pro Medicus share price charging higher?
Investors have been buying the company's shares after it provided an update on its share buyback.
One year ago, Pro Medicus commenced an on-market share buyback for a period of 12 months. This allowed the company to buy back up to 10% of its shares on issue over the period.
However, this buyback has now completed without the purchase of a single share.
What now?
The good news for shareholders is that in light of its failure to buy shares over the last 12 months, the Pro Medicus board has announced the commencement of a new on-market share buyback today.
Once again, this will run for a period of 12 months and allows the company to acquire up to 10% of its shares on issue. This buyback program will commence in approximately 14 days and be handled by Goldman Sachs Australia.
Will Pro Medicus buy shares this time?
It remains unclear at what level the Pro Medicus share price would have to be trading at for the company to begin buying shares.
However, with its shares trading within sight of its all-time high, it seems unlikely that Goldman Sachs will be buying shares in the near term. Particularly given how they were trading below $30.00 for much of last year when its previous buyback program was in place.
Though, it is also worth noting that Goldman currently has a buy rating and $53.80 price target on the company's shares. So clearly its analysts see a lot of value in them at the current level.
