Discover the biggest stock buyback authorizations announced last week, May 8
May 16, 2023
Teekay Tankers Ltd. (NYSE: TNK) recently unveiled an updated capital allocation plan, expanding its focus to include shareholder returns alongside balance sheet strength and fleet reinvestments. In line with this, Teekay Tankers has initiated a fixed quarterly cash dividend of $0.25 per outstanding share of Class A and B common stock, as well as a special cash dividend of $1.00 per outstanding share. These dividends are set to be paid on June 2, 2023, to all common shareholders of record by May 22, 2023, with future dividends subject to the Board of Directors' discretion. Additionally, Teekay Tankers' Board of Directors has authorized a new share repurchase program, enabling the repurchase of up to $100 million of the company's outstanding Class A common shares. The program allows for repurchases through various channels, such as the open market and privately-negotiated transactions, based on Teekay Tankers's assessment of suitable times and prices. The final decision on the timing and quantity of shares repurchased lies with Teekay Tankers.
SandRidge Energy, Inc. recently made several financial announcements, including a one-time dividend of $2.00 per share (approximately $74 million total payout) and an ongoing quarterly dividend of $0.10 per share starting in August 2023. In addition, SandRidge authorized a $75 million stock buyback program. The decision to authorize the stock buyback was likely driven by SandRidge's aim to optimize its capital allocation and create value for shareholders. SandRidge Energy, Inc. intends to maintain flexibility for potential merger and acquisition opportunities while focusing on responsible and efficient growth.
Vitru Limited (VTRU) has recently announced the authorization of a share buyback program, allowing the purchase of up to 500,000 of its common shares. This program will remain in effect until the earlier of the completion of the buybacks or May 15, 2024. The buybacks will be conducted through open market transactions and negotiated purchases, in accordance with the relevant regulations. Vitru intends to finance these purchases using its own cash balances derived from retained and future earnings. At the current share price, the program is valued at approximately R$37.5 million, equivalent to 18.3% of the consolidated Adjusted Net Income of 2022. Mr. Carlos Freitas, Chief Financial and Investor Relations Officer, expressed confidence in Vitru's long-term growth prospects and commitment to enhancing shareholder value. The specific details of the buyback transactions, including prices, timing, and quantity, will be determined by Vitru at its discretion, considering market conditions and other relevant factors.
LSB Industries, Inc. recently announced the authorization of a stock repurchase program, allowing LSB to buy back up to $150 million of its common stock. According to Mark Behrman, LSB Industries' President and CEO, this move reflects their belief that the stock is currently undervalued and presents an attractive investment opportunity. Despite a decline in nitrogen selling prices from their multi-year highs, LSB remains confident in its outlook for sustained profitability and cash flow. LSB Industries aims to enhance shareholder value through operational improvement, capitalizing on organic growth prospects, potential debt reduction, and the repurchase of common stock. The repurchases will be executed at management's discretion, considering various factors such as market conditions, stock availability, and LSB's financial performance. The program allows for repurchases through open market transactions or private transactions, in accordance with applicable securities laws and regulations. LSB Industries retains the flexibility to suspend, terminate, or modify the program as deemed appropriate, based on factors like market conditions, cost, alternative investment opportunities, and liquidity.
Trex Company, Inc. (TREX), the leading provider of eco-friendly composite decking and outdoor living products, announced its first-quarter results, which were in line with expectations. Trex reported net sales of $239 million, a gross margin of 39.6%, and net income of $41 million, with diluted earnings per share of $0.38. Trex's CEO, Bryan Fairbanks, attributed the company's success to its strong brand, efficient manufacturing, and solid relationships with industry partners. Despite cautious purchase patterns due to economic conditions, Trex remains confident in the long-term growth prospects of the outdoor living category. Recent recognitions, including being named the Most Sustainable Decking Brand and earning top honors in Builder Magazine's Brand Use Study, further solidify Trex's position in the market. Trex authorized a new share repurchase program of up to 10% of its outstanding common stock, demonstrating its financial strength and confidence in future growth. Trex expects second-quarter revenue of $310 million to $320 million and reaffirms an EBITDA margin of 26% to 27% for FY 2023. Capital expenditures for the year are projected to be in the $130 million to $140 million range, mainly for the construction of the Arkansas plant.
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