Cresud (BCBA:CRESm) Inc. (NASDAQ:CRESY, BYMA:CRES), a leading real estate and agriculture company with a market capitalization of $854.8 million, announced today that it has continued its share repurchase initiative, acquiring a substantial number of common shares. The purchase, part of an ongoing program, was carried out on the Buenos Aires stock market. The company's stock has shown remarkable strength, gaining over 71% in the past six months.
The transaction involved 352,087 common shares at a price of ARS 1,453.7512 per share, totaling approximately ARS 511.8 million. With this latest acquisition, Cresud has now repurchased about 37.60% of the total shares authorized under the current repurchase plan. The company’s initiative to buy back shares is a strategic move to manage its capital allocation effectively.
Cresud, incorporated in the Republic of Argentina, is active in various sectors including real estate development, agriculture, and finance. The company's executive offices are located in Buenos Aires, Argentina. Notable for investors, the company offers a significant 7.11% dividend yield and maintains a GOOD overall financial health score according to InvestingPro analysis, which offers 8 additional valuable insights about the company's performance.
The repurchase of shares is a common strategy employed by companies seeking to return value to shareholders. It can potentially increase earnings per share and is often viewed favorably by the market. Cresud's latest repurchase reflects a significant investment back into the company, showcasing confidence in its own financial health and future prospects.
Investors and market watchers will be observing Cresud's future moves as it continues to execute its share repurchase program. This news is based on the company's recent SEC filing and is a testament to Cresud's ongoing efforts to enhance shareholder value.
In other recent news, Buenos Aires-based real estate company Cresud Inc. has been making significant strides in its financial operations. The company has made substantial progress in its ongoing share repurchase program, acquiring a total of 1,411,964 common shares. This accounts for approximately 29.72% of the total shares authorized for repurchase, indicating a substantial move towards capital return to its shareholders.
Additionally, Cresud successfully issued Series XLVII notes in the local Argentine capital market, raising $64.4 million with an interest rate of 7.00%, set to mature on November 15, 2028. The company has also altered the terms of its outstanding warrants, increasing the number of shares that can be acquired per warrant and reducing the exercise price per share.
Moreover, the company's shareholders approved financial documents for the fiscal year ending June 30, 2024, agreeing on a net income allocation of approximately 70.8 billion Argentine pesos, which includes a substantial cash dividend distribution of ARS 45 billion. Cresud has also sold a portion of its "Los Pozos" property in Salta Province, Argentina, for a total of $2.23 million.
Lastly, to strengthen its capital structure and diversify its financing sources, Cresud issued Series XLVI notes, raising an equivalent of USD 28.6 million.
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