TEL AVIV, Israel - Nexxen International Ltd., a company specializing in computer programming and data processing services, announced today its intention to launch a new share repurchase program. The company seeks authorization to buy back up to $50 million of its ordinary shares.
The repurchase program is stated to align with the company's financial strategy and capital allocation plans. Nexxen International, formerly known as Tremor International Ltd., has not disclosed the specific timing for the commencement of the buyback program, leaving investors to anticipate further announcements.
This move comes as part of Nexxen's broader efforts to manage its capital efficiently and is expected to have an impact on the company's earnings per share by potentially reducing the number of shares outstanding.
The announcement was made in accordance with the AIM Market Rules and has been incorporated by reference into the company's existing registration statement on Form S-8 (Registration No. 333-258731).
Nexxen International's Chief Financial Officer, Sagi Niri, signed off on the report filed with the Securities and Exchange Commission (SEC) today, making the share repurchase program official. However, the company has not provided any additional details regarding the program's execution or any potential impact on its financial position.
Investors and market watchers will be looking closely at Nexxen's future filings and announcements for updates on the execution of the share repurchase program and its effects on the company's stock performance.
This news is based on a press release statement and reflects the company's current plans as reported to the SEC. Share repurchase programs are a common method for companies to return value to shareholders and can be indicative of the management's confidence in the company's financial stability and future prospects.
In other recent news, Nexxen International Ltd. has reported promising financial performance in the second quarter. The company's first-quarter results exceeded projections, with a contribution excluding Traffic Acquisition Costs (ex-TAC) 4% higher than expected and EBITDA $1.8M above consensus.
Following these robust financial results, Nexxen initiated a new $50M share repurchase program. RBC Capital has raised its price target for Nexxen from $9 to $11, maintaining an Outperform rating, indicating the firm's continued confidence in Nexxen's prospects.
In addition, Nexxen's directors have engaged in transactions under Rule 10b-5, which are part of the directors' planned financial management strategies and are executed through plans that allow insiders to trade shares at predetermined times and prices.
The company is set to release its financial results for the second quarter of 2024 soon. These are all recent developments in Nexxen International Ltd.'s financial journey.
InvestingPro Insights
Nexxen International's decision to launch a share repurchase program aligns well with its strong financial position, as highlighted by several InvestingPro metrics and tips. The company's market cap stands at $525.66 million, and it holds more cash than debt on its balance sheet, indicating financial stability to support the buyback initiative.
InvestingPro Tips reveal that Nexxen has a high shareholder yield and impressive gross profit margins, which reached 81.81% in the last twelve months as of Q2 2024. This strong profitability provides a solid foundation for the repurchase program. Additionally, the company's revenue for the same period was $339.02 million, with a quarterly growth of 5.14% in Q2 2024, suggesting ongoing business expansion.
The stock has shown remarkable performance, with a 123.8% price total return over the past year and is currently trading near its 52-week high at 93.49% of that peak. This positive momentum, coupled with the buyback announcement, could further boost investor confidence.
For those interested in a deeper analysis, InvestingPro offers 11 additional tips that could provide valuable insights into Nexxen's financial health and market position.
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