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ORLANDO - Abacus Global Management, Inc. (NASDAQ: ABL), a firm in the alternative asset management sector, has announced the authorization of a new $20 million share repurchase program. The program, effective as of Thursday, is set to take place over an 18-month period. This move comes alongside employee share purchases exceeding $2 million, signaling confidence from both the board and staff in the company’s financial health. The announcement comes as the stock has declined 26% in the past week and 46.59% over the last year, according to InvestingPro data.
CEO Jay Jackson commented on the decision amidst a recent short attack on the company, expressing belief in the value of the company’s shares and the board’s confidence in the business model and the company’s financial foundation. This view appears to align with InvestingPro analysis, which indicates the stock is currently undervalued, with analyst price targets ranging from $12 to $15 per share. Abacus plans to execute the buyback through various methods, which may include open market transactions, block trades, and privately negotiated transactions, among others.
The company has stated that the repurchase program’s specifics, such as timing and quantity of shares, will be at its discretion and subject to market conditions, liquidity, legal requirements, and other factors. Abacus has made clear that there is no obligation to repurchase any specific number of shares and that the program can be altered or discontinued without notice.
Funding for the share repurchases is expected to come from the company’s existing cash reserves and anticipated future cash flows. In addition to the buyback announcement, Abacus has expressed its intent to pursue legal action against those responsible for the short attack.
The press release also contained forward-looking statements regarding Abacus’s financial and operational outlook, cautioning that these statements are based on assumptions and subject to uncertainties that could cause actual results to differ materially.
Abacus Global Management specializes in alternative asset management and offers a range of financial services and technology solutions. The company currently maintains a market capitalization of approximately $598 million, with a robust gross profit margin of 88.29%, though InvestingPro data indicates some concerns about cash burn rates and short-term liquidity. The information in this article is based on a press release statement from Abacus Global Management. For deeper insights into ABL’s financial health, valuation metrics, and additional ProTips, investors can access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Abacus Global Management has announced a $20 million stock buyback plan, approved by its Board of Directors, to be executed over the next eighteen months. This move is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value. Piper Sandler analysts have maintained their Overweight rating on Abacus Life, despite a short report alleging the company has been underestimating life spans in its valuations. The short report also criticized Abacus Life’s accounting practices, but the analysts noted that the company’s methods are well-known to investors.
Abacus Global Management has publicly refuted the short seller allegations, emphasizing its audited returns and long-standing industry relationships. The company highlighted its first-quarter financial results, which showed gains of nearly 40% on a capital deployment of $126 million. Additionally, Abacus Global Management has made significant changes to its executive compensation structure, including salary increases and performance-based incentives. The adjustments aim to align executive pay with company performance and market standards.
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