SALT LAKE CITY - Franklin Covey Co. (NYSE: FC), a global firm specializing in performance improvement, announced today that its Board of Directors has authorized a new stock repurchase program. The company plans to buy back up to $50 million of its outstanding common stock, replacing the previous buyback plan that was nearly exhausted and consequently canceled.
The new stock repurchase initiative is effective immediately and is not bound by an expiration date. Repurchases will be made in the open market at prevailing prices or through other transactions in compliance with federal securities laws.
Franklin Covey has stated that the repurchase of shares will be subject to market conditions, share price, and other considerations. The company retains the discretion to decide the timing and scale of the buybacks and has clarified that there is no obligation to repurchase any specific number of shares.
Moreover, the company highlighted that the repurchase plan could be suspended, discontinued, or modified at any time for any reason, indicating a flexible approach to the execution of the program.
The stock repurchase plan is a common strategy used by companies to return value to shareholders, as it can potentially increase earnings per share and the value of remaining shares by reducing the total number of shares outstanding.
Franklin Covey's announcement follows the completion of its prior stock repurchase program and reflects the company's ongoing commitment to managing its capital effectively. The decision comes amid a business environment where many companies are evaluating their capital allocation strategies to maximize shareholder value.
The information about the new stock repurchase program is based on a press release statement from Franklin Covey Co.
InvestingPro Insights
Franklin Covey Co.'s recent announcement of a new stock repurchase program underscores the company's commitment to shareholder value. This decision aligns with one of the InvestingPro Tips that management has been aggressively buying back shares, which can be an indication of the company's belief in its intrinsic value and a bullish signal to investors.
From a financial standpoint, Franklin Covey appears to be in a solid position. The company holds more cash than debt on its balance sheet, a further InvestingPro Tip that suggests financial stability and the potential for sustained investment in growth or shareholder returns.
Moreover, the company's impressive gross profit margin of 76.19% over the last twelve months as of Q2 2024, as indicated by InvestingPro Data, supports the notion of operational efficiency and a strong competitive position in its industry.
The current market capitalization of Franklin Covey stands at $504.64 million, with a Price/Earnings (P/E) ratio of 29.62, reflecting investor expectations of future earnings potential. The adjusted P/E ratio for the last twelve months as of Q2 2024 is slightly lower at 25.9, which may indicate a more favorable valuation when considering the company's recent performance.
Moreover, the company's stock is trading at a Price/Book multiple of 7.15, which suggests that the market is assigning a higher value to the company compared to its book value.
Investors looking for more insights and tips on Franklin Covey can find additional information on InvestingPro. There are 11 more InvestingPro Tips available, which can provide a deeper understanding of the company's financial health and future prospects. To access these insights, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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