Targeting stocks with recently announced buyback programs can be beneficial for investors. 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 –
GEE Group Inc. – SYM: JOB
Recent Price: $0.49
Buyback Action: The Board of Directors authorized a new $20 million share repurchase program, equal to around 35% of its market cap at announcement.
Description: GEE Group Inc. provides permanent and temporary professional and industrial staffing and placement services in the United States. The company operates through two segments, Industrial Staffing Services and Professional Staffing Services.
Startek, Inc. – SYM: SRT
Recent Price: $3.05
Buyback Action: The Board of Directors authorized a new $20 million share repurchase program of the company’s Class A common stock, representing around 16% of its market cap at announcement.
Description: StarTek, Inc., a business process outsourcing company, provides customer experience, digital transformation, and technology services in various markets. The company primarily offers customer engagement, omnichannel engagement, social media, customer intelligence analytics, work from home, and back-office services under the Startek and Aegis brands. It also offers Startek cloud, a hybrid omni-cloud platform integrated with artificial intelligence capabilities, which enables agents to work in remote and home-based roles for increased business agility and continuity. The company serves telecom, e-commerce and consumer, financial and business services, cable and media, travel and hospitality, technology, education and healthcare, energy, and other industries in the Americas, India, Sri Lanka, Malaysia, South Africa, Australia, and internationally. StarTek, Inc. was founded in 1987 and is headquartered in Denver, Colorado.
RCM Technologies, Inc. – SYM: RCMT
Recent Price: $13.65
Buyback Action: The Board of Directors authorized a new share repurchase of $25 million of the company’s Class A common stock, equal to 24% of its market cap at announcement.
Description: RCM Technologies, Inc. provides business and technology solutions in the United States, Canada, Puerto Rico, and Serbia. It operates through three segments: Engineering, Specialty Health Care, and Life Sciences and Information Technology. The Engineering segment offers a range of engineering services, including project management engineering and design, engineering analysis, engineer-procure-construct, configuration management, hardware/software validation and verification, quality assurance, technical writing and publications, manufacturing process planning and improvement, and 3D/BIM integrated design. The Specialty Health Care segment provides long-term and short-term staffing, executive search, and placement services in the fields of allied and therapy staffing, correctional healthcare staffing, health information management, nursing services, physician and advanced practice, school services, and telepractice. The Life Sciences and Information Technology segment offers enterprise business solutions, application services, infrastructure solutions, competitive advantage, life sciences solutions, and other vertical market specific solutions. The company serves aerospace and defense, energy, financial services, health care, life sciences, manufacturing and distribution, and technology industries, as well as educational institutions and the public sector. RCM Technologies, Inc. was founded in 1971 and is based in Pennsauken, New Jersey.