CHICAGO - OppFi Inc. (NYSE: OPFI), a financial platform serving everyday Americans, has declared a special dividend and unveiled a new share repurchase initiative, signaling confidence in its financial health and future prospects. The company's Board of Directors announced a $0.12 per share special dividend payable on May 1, 2024, to shareholders of record as of April 19, 2024. This move marks the company's first special dividend since becoming a public entity.
In tandem with the dividend, OppFi's Board has authorized a $20 million share repurchase program. This decision comes as management believes the current stock price does not reflect the company's intrinsic value and earnings potential. The buyback program is set to expire in April 2027 and may be conducted through various means, including open market transactions, private negotiations, or other methods, in compliance with SEC Rule 10b5-1 and other legal requirements.
The CEO and Executive Chairman of OppFi, Todd Schwartz, expressed enthusiasm for the special dividend distribution and the share repurchase authorization. He stated that these actions demonstrate the company's commitment to its stockholders and its ability to generate strong free cash flow.
Schwartz further emphasized that the company's solid balance sheet positions it well to return value to shareholders while maintaining the flexibility to pursue growth initiatives and corporate development objectives.
The dividend and repurchase program are part of OppFi's broader strategy to enhance stockholder value and support the company's stock price. The repurchase program does not obligate OppFi to buy back any specific number of shares and may be adjusted, paused, or discontinued at any time.
OppFi, known for its transparency, responsible lending, and financial inclusion, aims to provide credit access to consumers who are typically underserved by mainstream financial options. The company's customer-centric approach has earned it a high rating on Trustpilot, with numerous positive reviews.
This article is based on a press release statement from OppFi.
InvestingPro Insights
As OppFi Inc. (NYSE: OPFI) announces a special dividend and a new share repurchase initiative, investors are keen to understand the company's financial metrics and future potential. According to InvestingPro data, OppFi has a market capitalization of $283.95 million, which is reflective of the market's current valuation of the company. Despite not being profitable over the last twelve months, analysts are predicting that the company will turn a profit this year. This is a crucial factor for potential investors, as it signals a possible shift in the company's financial trajectory.
The revenue growth figures are particularly noteworthy, with a 24.55% increase in the last twelve months as of Q1 2023, and an even more impressive quarterly revenue growth of 42.34% for Q1 2023. This suggests that OppFi is expanding its revenue streams effectively, which may be a positive sign for its earnings potential and the success of its growth initiatives. However, with a high Price/Book ratio of 27.2, the stock trades at a premium relative to its book value, which could imply that it's valued more for its growth prospects than for its current assets.
InvestingPro Tips highlight that the stock generally trades with high price volatility, which could be a consideration for risk-averse investors. Additionally, while OppFi has liquid assets that exceed short-term obligations, indicating a solid liquidity position, two analysts have revised their earnings estimates downwards for the upcoming period. This suggests that there may be some concerns about the company's near-term earnings performance.
For investors seeking more comprehensive analysis and additional insights, there are 9 more InvestingPro Tips available for OppFi, accessible through the InvestingPro platform. Interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing their investment research with valuable information and data.
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