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BELO HORIZONTE, Brazil - Afya Limited (NASDAQ:AFYA; B3:A2FY34), Brazil’s leading medical education group with a market capitalization of $1.35 billion, announced Wednesday its board of directors has approved a new share repurchase program for up to 4 million of its outstanding Class A common shares. The announcement comes as the stock trades near $7.33, down nearly 24% year-to-date.
The repurchase program will begin August 15, 2025, and continue until either completion or December 31, 2026, according to a press release statement. Purchases may be made through open market transactions or privately negotiated deals, depending on market conditions, liquidity requirements, and other business factors. According to InvestingPro data, the company maintains impressive gross profit margins of 64% and a strong free cash flow yield of 19%, suggesting robust financial capacity for the buyback program.
The company stated it plans to use the repurchased shares for its stock option program, potential future business combinations, and general corporate purposes. Funding for the repurchases will come from Afya’s existing funds and future dividends from Afya Participações.
The board will periodically review the program and may adjust its terms, size, or suspend it entirely. The company intends for the purchases to benefit from the safe harbor provided by Rule 10b-18 under the Securities Exchange Act of 1934.
Afya describes itself as a medical education group that provides an ecosystem serving students and physicians throughout their careers, from medical school through residency preparation, continuing education, and medical practice solutions. InvestingPro analysis suggests the stock is currently undervalued, with multiple additional insights available to subscribers, including 8 more ProTips about the company’s financial health and growth prospects.
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