Discover the biggest stock buyback authorizations last week, June 5
Buybacks
June 14, 2023
Xunlei Limited, a leading innovator of shared cloud computing and blockchain technology in China, has authorized a new share repurchase program. Under the 2023 Share Repurchase Program, Xunlei may repurchase up to US$20 million of its shares over the next 12 months. This decision comes after the Board's review of Xunlei's operations and financial conditions. Xunlei aims to demonstrate its confidence in the business and outlook by implementing this buyback program. As of March 31, 2023, Xunlei had already spent approximately US$7.9 million on share repurchases. The program allows for various means of repurchase, including open market purchases and privately negotiated transactions, based on market conditions and regulatory compliance. Xunlei plans to fund the repurchase plan from its cash balance, which stood at approximately US$258.3 million as of March 31, 2023.
Designer Brands Inc. (DBI), a leading global footwear and accessories designer, producer, and retailer, recently authorized a stock buyback program. Designer Brands has initiated a modified "Dutch Auction" tender offer, aiming to repurchase up to $100 million in value of its Class A common shares. The tender offer represents approximately 25% of the currently outstanding Class A common shares. The authorized price range for the buyback is between $7.00 and $8.00 per share, with the minimum purchase price set at $7.00 per share. Designer Brands intends to finance the buyback through a term loan agreement of $135 million. This strategic move demonstrates Designer Brands' commitment to enhancing shareholder value and confidence in its financial position. The tender offer will expire on Friday, July 7, 2023, unless extended or terminated by Designer Brands.
a.k.a. Brands Holding Corp. (NYSE: AKA), a leading brand accelerator for innovative fashion brands, recently announced its approval of a share repurchase program. Under this program, a.k.a. Brands has been granted authorization to buy back up to $2 million worth of its common stock. This decision by the Board of Directors reflects a.k.a. Brands’ commitment to optimizing its capital structure and enhancing shareholder value. The repurchases will be executed based on various factors, including available liquidity, market conditions, capital allocation alternatives, and regulatory requirements. a.k.a. Brands may utilize open market transactions, block trades, or private transactions to fulfill the repurchase program. Moreover, the implementation of a trading plan under Rule 10b5-1 of the Securities Exchange Act of 1934 allows a flexible approach to share repurchases, circumventing trading blackout periods and regulatory constraints. It's important to note that a.k.a. Brands is not obligated to repurchase a specific number of shares, and the Share Repurchase Program can be modified, paused, or terminated at a.k.a. Brands' discretion without prior notice.
REV Group, Inc., a leading manufacturer of specialty vehicles, reported strong financial results for the second quarter of 2023. With a net sales increase of 18.2% compared to the prior year quarter, reaching $681.2 million, and a net income of $14.2 million, REV demonstrated continued momentum and improved operational consistency. The positive performance was mainly driven by higher sales across all segments, particularly in the Fire & Emergency and Commercial segments. As a result, REV Group raised its full-year fiscal 2023 outlook for net sales, Adjusted EBITDA, Adjusted Net Income, and Free Cash Flow. In light of their confidence in REV's prospects, the board of directors authorized a new $175.0 million share repurchase program, which replaces the previous program and allows management to buy back shares over the next 24 months, reflecting their commitment to enhancing shareholder value.
Cactus, Inc. recently announced that its board of directors has authorized the repurchase of shares of its Class A common stock, with an aggregate purchase price of up to $150 million. This decision comes as a result of Cactus' expectation of stronger cash generation from its Cactus and FlexSteel businesses, which they believe is currently undervalued in the equity market. Despite the projected decline in the U.S. onshore rig count, Cactus anticipates better-than-expected results for Q2 2023 in both segments, as stated in their updated investor presentation. Cactus, Inc. plans to invest in organic growth opportunities, pay down debt, evaluate attractive M&A prospects, maintain a sustainable dividend, and execute repurchases under this authorization. The repurchase program is not bound by any specific share amount and may be suspended or discontinued at Cactus' discretion, with repurchases being determined based on various factors such as economic conditions, market conditions, available cash, legal requirements, and other relevant considerations.
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