TEGNA (NYSE:TGNA) Inc., owner of 64 television stations across 51 U.S. markets, announced a new Accelerated Share Repurchase (ASR) program today, following the termination of a merger agreement. The company plans to buy back $325 million in common shares from JPMorgan Chase (NYSE:JPM) Bank, with the initial delivery of approximately 17.3 million shares scheduled for Monday, November 13.
The final number of shares to be repurchased will be determined by the average daily volume-weighted average price of TEGNA shares during the ASR term, less a discount and subject to adjustments. The program's final settlement is expected by the end of Q1 2024 but can be accelerated at JPMorgan's discretion.
This announcement comes after TEGNA completed a $300 million ASR program before the start of its third quarter blackout period on September 16, reducing its outstanding share count by around 18 million. An additional $28 million in shares were repurchased prior to the blackout period.
Throughout 2023, TEGNA has committed to nearly $800 million in share repurchases. This commitment is set to result in the retirement of approximately 45-50 million shares by March 2024, representing more than twenty percent of outstanding shares before these actions. As of September 30, TEGNA had retired a total of 28.7 million shares.
With this new ASR program, TEGNA continues its strategy to retire between 45-50 million shares by March next year. The company reaches approximately 39 percent of all television households nationwide.
InvestingPro Insights
The recent ASR program by TEGNA Inc. aligns with the InvestingPro Tip that management has been aggressively buying back shares. The company's commitment to retire between 45-50 million shares by March next year also reflects a high return on invested capital, another InvestingPro Tip for the company.
TEGNA's strong earnings, as noted by InvestingPro, should allow the company to continue its impressive dividend payments. The company boasts a high shareholder yield and has consistently raised its dividend for three consecutive years.
InvestingPro also highlights that two analysts have revised their earnings upwards for the upcoming period, suggesting confidence in the company's financial performance. This is reflected in TEGNA's low P/E ratio relative to its near-term earnings growth, a metric that suggests the company may be undervalued.
Please note that InvestingPro provides numerous other tips for TEGNA and other companies, offering valuable insights into their financial performance and investment potential.
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