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Outerwall rises to all-time high on $350M buyback

February 7, 2014

NEW YORK (AP) Shares of Outerwall spiked 13 percent to an all-time high Friday after announcing it would buy back as much as $350 million in company stock.

The operator of Redbox DVD rental kiosks also reported higher profit and revenue from the fourth-quarter.

The company operates the Coinstar coin-counting machines and ecoATM, which are electronics recycling kiosks. But Redbox is its biggest money maker. In the fourth quarter, all three businesses posted higher revenue compared to the year before.

Wedbush analyst Michael Pachter said the share buyback plan may help Outerwall's earnings grow in 2014.

Late last year, Outerwall shut down three of its new business, including a coffee kiosk business. Pachter said cutting down on new ventures should allow the company to better focus on its core business.

Outerwall Inc., based in Bellevue, Wash., changed its name from Coinstar last year.

Shares rose $8.43 to $72.07 in morning trading.

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Source: Associated Press

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