Cinedigm Announces Plan to Repurchase 10 Million Shares
March 1, 2023
With its share price down below 50 cents a share, Cinedigm March 1 announced that it has started a stock repurchase program aimed at purchasing up to 10 million shares of its outstanding Class A common stock.
A publicly traded company often purchases its stock when management feels they are undervalued. Such a move can raise the share price, provided investors see the move as a positive.
Indeed, shares are up almost 4% to 51 cents, which is still below the Nasdaq minimum of $1 per share.
“This stock repurchase program is a testimonial to the unwavering confidence the board and management has in the future of the company and the considerably undervalued price of our common stock,” CEO Chris McGurk said in a statement. “We are on a strategic path that will differentiate us from all others in our industry and produce sustained profitability and growth. We see this stock repurchase program as an exceptional investment opportunity that will further enhance the value of our company in the years ahead.”
Cinedigm posted net income of nearly $5 million on revenue of almost $28 million in its most-recent fiscal period.
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