Organogenesis Holdings Inc. (NASDAQ:ORGO), a pharmaceutical company with a market capitalization of approximately $512 million, has entered into a material agreement to repurchase shares from a significant trust. The company will buy back 500,000 shares of its Class A common stock from the GN 2016 Family Trust for $4.057 per share.
The repurchase transaction is expected to close on or around Tuesday, December 3, 2024. Organogenesis's decision to repurchase shares from the GN 2016 Family Trust aligns with the company's strategic financial management and reflects its ongoing efforts to optimize shareholder value. Analyst price targets for ORGO range from $3.80 to $6.00, suggesting potential upside from current levels.
In other recent news, Organogenesis Holdings Inc. reported a significant increase in their third-quarter fiscal year 2024 earnings. The company's net revenue reached $115.2 million, surpassing the projected range of $105 million to $113 million, demonstrating a year-over-year growth of 6%. This was mainly driven by a 7% revenue increase in the advanced wound care segment, which totaled $108 million.
In response to the strong quarter, Organogenesis raised its revenue guidance for 2024 to a range of $455 million to $480 million, indicating a potential year-over-year growth ranging from 5% to 11%. Cantor Fitzgerald adjusted its outlook on Organogenesis, increasing the price target to $3.80 from the previous $3.50, while reaffirming its Overweight rating on the company's shares.
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