BEIJING - KE Holdings Inc. (NYSE: BEKE and HKEX: 2423), known as Beike, which operates a prominent integrated platform for housing transactions and services, today announced an expansion and extension of its share repurchase program.
The company's board of directors has approved an increase in the repurchase authorization from $2 billion to $3 billion of its Class A ordinary shares and/or American depositary shares (ADSs). This extension is set to continue until August 31, 2025.
Previously, the share repurchase program had a deadline of August 31, 2024. Under the original terms, the company has already acquired approximately 95 million ADSs, equivalent to about 285 million Class A ordinary shares, on the New York Stock Exchange, amounting to nearly $1.39 billion in total consideration.
This development follows the approval by shareholders at the annual general meeting on June 14, 2024, where they granted the board a general unconditional mandate to repurchase the company's own shares. This mandate covers the repurchases under the newly extended program until the next annual general meeting, at which point the company will seek further approval to continue its share repurchases.
KE Holdings, which owns and operates Lianjia, China's leading real estate brokerage brand, has been a pioneer in establishing infrastructure and standards for housing transactions and services in China. The company's services range from existing and new home sales to home rentals, renovations, furnishing, and other related services.
The press release also includes forward-looking statements that involve risks and uncertainties, including statements about the company's future business development, financial condition, and results of operations. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995.
The information presented in this article is based on a press release statement from KE Holdings Inc. and does not include any additional analysis or commentary. The expansion of the share repurchase program reflects the company's ongoing commitment to return value to its shareholders.
InvestingPro Insights
KE Holdings Inc. (NYSE: BEKE and HKEX: 2423), also known as Beike, has recently made headlines with the expansion of its share repurchase program. As investors consider the implications of this move, InvestingPro offers some valuable insights that could further inform their decisions.
InvestingPro Tips for KE Holdings reveal that the company is not only a major player in the Real Estate Management & Development industry (Tip #4) but also that management has been actively buying back shares (Tip #0). This aligns with the company's announcement, indicating a strong confidence from leadership in the company's value proposition and a commitment to shareholder returns.
Moreover, KE Holdings holds more cash than debt on its balance sheet (Tip #1), which is a positive sign for investors, as it suggests financial stability and the ability to fund operations and strategic initiatives without relying heavily on external financing.
From the InvestingPro real-time data, we can see that KE Holdings has a market capitalization of $16.94 billion (Market Cap (Adjusted)). The company's P/E ratio stands at 35.51, which may appear elevated; however, when considering the near-term earnings growth, the company is trading at a low P/E ratio relative to that growth (Tip #2). Additionally, the company's revenue for the last twelve months as of Q1 2024 is reported at $10.23 billion (Revenue LTM2024.Q1), with a growth rate of 8.01% (Revenue Growth LTM2024.Q1).
Investors seeking additional InvestingPro Tips can find a wealth of information on the platform. There are currently 15 additional tips available for KE Holdings Inc. at https://www.investing.com/pro/2423, providing deeper analysis and perspectives that could be instrumental in making informed investment decisions.
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