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 –
Performance Shipping Inc. – SYM: PSHG
Recent Price: $0.86
Buyback Action: The Board of Directors authorized a new $2 million share repurchase program, equal to around 22.8% of its market cap at announcement.
Description: Performance Shipping Inc., through its subsidiaries, provides shipping transportation services through its ownership of tanker vessels worldwide.
Rafael Holdings, Inc. – SYM: RFL
Recent Price: $1.91
Buyback Action: The Board of Directors authorized a new share repurchase of $2 million of the company’s Class A common stock, equal to 11% of its market cap at announcement.
Description: Rafael Holdings, Inc. holds interests in clinical and early stage pharmaceutical companies, and commercial real estate assets in the United States and Israel. It operates in two segments, Healthcare and Real Estate. The company engages in the development and commercialization of therapies that exploit the metabolic differences between normal cells and cancer cells. Its lead drug candidate is CPI-613 (devimistat), that is in Phase III clinical study for the treatment of metastatic pancreatic cancer and acute myeloid leukemia. Rafael Holdings, Inc. was incorporated in 2017 and is headquartered in Newark, New Jersey.
Dave & Buster’s Entertainment, Inc. – SYM: PLAY
Recent Price: $34.04
Buyback Action: The Board of Directors authorized a new $100 million share repurchase program of the company’s Class A common stock, representing around 5.7% of its market cap at announcement.
Description: Dave & Buster’s Entertainment, Inc. owns and operates entertainment and dining venues for adults and families in North America. Its venues offer a menu of entrées and appetizers, as well as a selection of alcoholic and non-alcoholic beverages; and an assortment of entertainment attractions centered on playing games and watching live sports, and other televised events. The company operates its venues under the Dave & Buster’s name. The company was founded in 1982 and is headquartered in Coppell, Texas.