SHANGHAI - Nisun International Enterprise Development Group Co., Ltd (NASDAQ:NISN), a provider of integrated supply chain solutions, announced a share repurchase program today. The company's Board of Directors has authorized the buyback of up to $15 million of its outstanding Class A common shares over the next 12 months.
The repurchases will be made in the open market based on prevailing prices and will depend on market conditions and other factors. The program will be financed using the company's available cash and profits from operations.
This move is seen as a reflection of Nisun International's belief in its business model and its prospects for long-term growth. The repurchase strategy is aimed at boosting shareholder value through potential increases in earnings per share, due to a reduced share count.
CEO Xin Liu expressed that the current stock price does not adequately represent the company's intrinsic value and its future potential. "This repurchase program underscores our confidence in the Company's future and represents an efficient way to return value to our shareholders," said Liu.
The Board will periodically review the program and may make adjustments to its terms and size. The company is not committed to acquiring a specific number of shares and may halt or discontinue the purchases at any time.
Nisun International specializes in offering supply chain solutions that integrate technology and finance, serving both Chinese and international clients. The company focuses on the digital transformation of the tech and finance sectors and aims to support industrial supply chain reform.
The press release also contained forward-looking statements regarding the company's expectations for the future, which are subject to various risks and uncertainties that could cause actual results to differ from those projected.
The information provided is based on a press release statement from Nisun International.
In other recent news, Nisun International Enterprise Development Group Co., Ltd reported a 52% surge in revenue for the first half of 2024, expecting to report approximately $192.5 million. The company also anticipates earnings per share for the same period to be around $2.61. Nisun International's gold trading business has crossed a significant threshold, generating approximately $240 million in cumulative revenue. This milestone underscores the company's successful expansion into the gold supply chain trading sector.
Furthermore, the company's principal shareholder, Mr. Bodang Liu, has increased his stake from 19.36% to 21.92%, acquiring an additional 102,700 shares, reinforcing the company's solid fundamentals. In a regulatory update, Nisun International has regained compliance with Nasdaq's periodic filing requirements, resolving previous concerns regarding its listing on the exchange.
Nisun International has also secured a procurement deal for over 50,000 tons of corn, marking a substantial expansion of its grain business. This move is expected to enhance the company's capacity to deliver stable and efficient grain solutions. These are the recent developments for Nisun International Enterprise Development Group Co., Ltd.
InvestingPro Insights
Nisun International's share repurchase program aligns well with several key financial metrics and trends highlighted by InvestingPro. The company's strong financial position is evident from InvestingPro data, which shows that NISN holds more cash than debt on its balance sheet and has liquid assets exceeding short-term obligations. This robust liquidity supports the company's ability to finance the $15 million share buyback program using available cash and operational profits.
The repurchase program's goal of boosting shareholder value is reflected in InvestingPro Tips, which indicate a high shareholder yield for NISN. Additionally, the company is trading at a low Price / Book multiple of 0.38 and a low P/E ratio of 3.46 (adjusted for the last twelve months as of Q4 2023), suggesting that the stock may indeed be undervalued as management believes.
NISN's financial performance has been impressive, with revenue growth of 65.12% over the last twelve months and a substantial 123.66% quarterly revenue growth in Q4 2023. This strong growth trajectory supports CEO Xin Liu's confidence in the company's future prospects and intrinsic value.
It's worth noting that NISN has shown remarkable market performance, with InvestingPro data revealing a 726.72% price total return over the past year. This significant appreciation aligns with the company's profitable operations and growth, as NISN reported being profitable over the last twelve months.
For investors seeking more comprehensive insights, InvestingPro offers 13 additional tips for NISN, providing a deeper understanding of the company's financial health and market position.
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