OMAHA, Neb. - Boston Omaha Corporation (NYSE:BOC), a diversified holding company, announced the approval of a share repurchase program by its Board of Directors. The program authorizes the repurchase of up to $20 million of its Class A common stock through September 30, 2025. The initiative is set to commence on or about August 15, 2024, following the company's second-quarter earnings report.
Adam Peterson, Chairman and CEO, stated that the company views its Class A common stock as an attractive investment, particularly when it trades below what the company perceives as its intrinsic value. The repurchase program is seen as an opportunity to buy back shares while continuing to invest in the company's various business segments. Peterson emphasized the goal of growing long-term value per share through strategic capital allocation.
The company also has the option to execute the repurchases under Rule 10b5-1 trading plans, which would enable stock buybacks during periods that might otherwise restrict such activities due to securities laws or internal trading blackout periods.
The exact timing and volume of the repurchases will be influenced by market conditions, stock price, regulatory requirements, and other investment opportunities. The program does not require the company to repurchase any specific number of shares and can be adjusted or terminated at any time.
Boston Omaha Corporation's portfolio includes majority stakes in businesses spanning outdoor advertising, broadband telecommunications services, surety insurance, and asset management.
The press release included forward-looking statements regarding the execution of the share repurchase program and its potential effects on the company's stock performance and long-term growth. These statements are based on current expectations and could differ materially from actual results due to various risk factors, including market conditions and the company's financial performance.
This news is based on a press release statement from Boston Omaha Corporation.
In other recent news, Boston Omaha Corporation announced the departure of Co-CEO and Co-Chair Alex Rozek, who has chosen to pursue new entrepreneurial opportunities. Adam Peterson will now serve as the sole Chair and CEO of the company. Rozek's contributions to Boston Omaha's growth over the past nine years have been significant, and he will continue to represent Boston Omaha on the board of Sky Harbour Group Corporation.
Meanwhile, Wells Fargo (NYSE:WFC) has revised its price target for SailPoint Technologies Holdings (NYSE:SAIL), reducing it to $17.00 from the previous $23.00. Despite this adjustment, the firm maintained its Overweight rating on the company's shares. The new price target reflects a more conservative view of the company's future earnings before interest, taxes, depreciation, and amortization.
These developments are part of recent news surrounding both Boston Omaha and SailPoint. Wells Fargo's decision to reduce SailPoint's price target is based on a recalibration of expectations for the company's growth potential. Boston Omaha, on the other hand, is focusing on enhancing efficiencies within its current business lines and reinvesting cash flows internally.
InvestingPro Insights
As Boston Omaha Corporation (NYSE:BOC) announces its share repurchase program, a look at the company's financial health through InvestingPro's real-time data offers insights into this strategic decision. With a market capitalization of $425.01 million and a notable revenue growth of 12.8% over the last twelve months as of Q1 2024, the company is showing a positive trend in its earnings capability.
Despite not being profitable in the last twelve months, as evidenced by a negative P/E ratio of -64.83 and an adjusted P/E ratio for the same period of -70.19, the company's gross profit margin stands at a robust 42.25%. This margin reflects a solid underlying business model that could support the buyback strategy by potentially enhancing shareholder value.
InvestingPro Tips highlight that Boston Omaha operates with a moderate level of debt and its liquid assets exceed short-term obligations, providing a degree of financial stability that may reassure investors considering the company's share repurchase plan. However, the company is trading at a high EBITDA valuation multiple and does not pay a dividend, which may influence investor sentiment regarding the attractiveness of the stock.
For those seeking a deeper dive into Boston Omaha's financial metrics and strategic outlook, InvestingPro offers additional tips and analytics. To explore more comprehensive analysis and gain investment insights, users can visit InvestingPro's Boston Omaha page. Don't forget to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. There are 5 more InvestingPro Tips available, providing a broader perspective on the company's financial position and market potential.
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