AUSTIN, TX - Citizens, Inc. (NYSE: CIA), a financial services company with a focus on insurance products, has filed a shelf registration statement with the SEC. This move, announced today, is a strategic step to replace the expiring shelf registration on November 30, 2024, and to update its Stock Investment Plan (SIP).
The company, which has offered the SIP since 2001, will now be able to issue up to 5 million shares, a reduction from the previous 15 million shares. President and CEO Jon Stenberg views this as a continuation of good corporate practice, ensuring flexibility for capital management and supporting the company's growth strategy.
Citizens Inc.'s SIP allows investors to purchase shares directly or on the open market. Although currently not used for raising capital, the SIP provides an option for future needs. Stenberg emphasizes the company's dedication to delivering sustainable growth in book value per share.
The shelf registration is not yet effective, and the company cannot sell shares or accept offers to buy until the SEC declares it effective. The press release clarifies that this is not an offer to sell or a solicitation of an offer to buy securities.
Citizens, Inc. operates in the U.S., Latin America, and Asia, offering life, living benefits, and final expense insurance. It aims to meet customer needs with innovative products and is recognized for its U.S. Dollar-denominated life insurance internationally.
The press release also contains forward-looking statements regarding business performance and strategy, which involve risks and uncertainties. The company does not undertake to update these statements and advises not to place undue reliance on them.
This news is based on a press release statement from Citizens, Inc.
InvestingPro Insights
Citizens, Inc.'s recent filing of a shelf registration statement aligns with its strategic financial planning, as reflected in the latest InvestingPro data. The company's market capitalization stands at $223.08 million, indicating its current market valuation. This figure is particularly relevant as Citizens prepares for potential future capital needs through its updated Stock Investment Plan (SIP).
InvestingPro Tips highlight that Citizens, Inc. has been profitable over the last twelve months, with a P/E ratio of 10.25. This profitability metric is crucial for investors considering the company's financial health as it maintains flexibility in its capital management strategy.
The company's revenue for the last twelve months as of Q3 2023 was $248.38 million, with a modest revenue growth of 3.02%. This growth, albeit small, supports CEO Jon Stenberg's emphasis on delivering sustainable growth in book value per share.
Interestingly, an InvestingPro Tip notes that the stock has shown a strong return over the last three months, with data confirming a substantial 46.84% price total return over this period. This recent performance could be a factor in the company's decision to reduce the number of shares available under the SIP from 15 million to 5 million, potentially indicating confidence in the stock's value.
It's worth noting that Citizens, Inc. does not pay a dividend to shareholders, according to another InvestingPro Tip. This aligns with the company's focus on growth and capital management flexibility, as outlined in their recent announcement.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights beyond those mentioned here. In fact, there are 8 more InvestingPro Tips available for Citizens, Inc., providing a deeper understanding of the company's financial position and market performance.
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