Targeting stocks with recently announced buyback programs can be beneficial for several reasons. Buyback programs can be seen as a signal of confidence by the company’s management in the future prospects of the business. When a company announces a buyback program, it indicates that it believes its stock is undervalued and that it has excess cash available to repurchase shares, which can be interpreted as a positive sign for investors. Buybacks can also potentially increase the value of the remaining shares by reducing the total number of shares outstanding, which could lead to higher earnings per share and potentially higher stock prices.
Here are three stock buybacks for the week –
New York Mortgage Trust, Inc. – SYM: NYMT
Recent Price: $9.98
Buyback Action: The Board of Directors authorized an additional $154 million share repurchase program, equal to 18.4% of its market cap at announcement.
Description: New York Mortgage Trust, Inc. acquires, invests in, finances, and manages mortgage-related single-family and multi-family residential assets in the United States.
Champions Oncology, Inc. – SYM: CSBR
Recent Price: $4.78
Buyback Action: The Board of Directors authorized a new $5 million share repurchase program, equal to around 8.4% of its market cap at announcement.
Description: Champions Oncology, Inc. develops and sells technology solutions and products to personalize the development and use of oncology drugs in the United States. Its Tumorgraft Technology Platform is an approach to personalizing cancer care based upon the implantation of human tumors in immune-deficient mice. The company, through its Tumorgraft Technology Platform, provides personalized cancer care based upon the implantation of human tumors in immune-deficient mice. It also offers Translational Oncology Solutions that utilizes its technology platform to assist pharmaceutical and biotechnology companies with their drug development process. The company provides Lumin Bioinformatics, a software platform and data tool that contains comprehensive information derived from research services and clinical studies, and sold on an annual subscriptions basis. The company markets its products through internet, word of mouth, and sales force to patients and physicians. The company was formerly known as Champions Biotechnology, Inc. and changed its name to Champions Oncology, Inc. in April 2011. Champions Oncology, Inc. was incorporated in 1985 and is headquartered in Hackensack, New Jersey.
Lumentum Holdings Inc. – SYM: LITE
Recent Price: $45.56
Buyback Action: The Board of Directors authorized an additional share repurchase of $200 million of the company’s Class A common stock, equal to 5.7% of its market cap at announcement.
Description: Lumentum Holdings Inc. manufactures and sells optical and photonic products in the Americas, the Asia-Pacific, Europe, the Middle East, and Africa. The company operates in two segments, Optical Communications (OpComms) and Commercial Lasers (Lasers). The OpComms segment offers components, modules, and subsystems that enable the transmission and transport of video, audio, and data over high-capacity fiber optic cables.It offers tunable transponders, transceivers, and transmitter modules; tunable lasers, receivers, and modulators; transport products, such as reconfigurable optical add/drop multiplexers, amplifiers, and optical channel monitors, as well as components, including 980nm, multi-mode, and Raman pumps; and switches, attenuators, photodetectors, gain flattening filters, isolators, wavelength-division multiplexing filters, arrayed waveguide gratings, multiplex/de-multiplexers, and integrated passive modules. This segment also provides Super Transport Blade, which integrates optical transport functions into a single-slot blade; vertical-cavity surface-emitting lasers; directly modulated and electro-absorption modulated lasers; and laser illumination sources for 3D sensing systems. It serves customers in telecommunications, data communications, and consumer and industrial markets. The Commercial Lasers segment offers diode-pumped solid-state, fiber, diode, direct-diode, and gas lasers, such as argon-ion and helium-neon lasers for use in original equipment manufacturer applications. It serves customers in markets and applications, such as sheet metal processing, general manufacturing, biotechnology, graphics and imaging, remote sensing, and precision machining. Lumentum Holdings Inc. was incorporated in 2015 and is headquartered in San Jose, California.