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SCHAUMBURG, Ill. - Ascent Industries Co. (NASDAQ:ACNT), a producer of specialty chemicals and industrial tubular products with a market capitalization of $112.23 million, announced today that its Board of Directors has approved an expanded stock repurchase plan. The company may buy back up to 1,000,000 shares, or about 10% of its outstanding common stock, over the next 24 months. The repurchases, occurring in the open market or through private transactions, will depend on market conditions and will be funded from working capital. According to InvestingPro data, the company maintains a strong current ratio of 3.77, indicating ample liquidity for such initiatives.
President and CEO Bryan Kitchen stated that the repurchase is aligned with their capital allocation strategy and is an opportune move considering the current undervaluation of the company’s shares. This assessment aligns with InvestingPro analysts’ target price of $18, suggesting significant upside potential from current levels. Kitchen emphasized that the buyback will complement the company’s growth objectives and not interfere with them.
The repurchased shares will either be reclassified as authorized, unissued stock or held as treasury shares. Ascent Industries has not committed to an exact number of shares to repurchase and reserves the right to halt the program based on management’s discretion. As of today, the company reported having 10,076,025 shares outstanding.
The repurchase program announcement comes as Ascent Industries continues to focus on its core business activities and growth prospects. While not profitable in the last twelve months, InvestingPro analysis indicates the company is expected to return to profitability this year, with several additional positive indicators available to Pro subscribers. The company’s decision to implement the stock repurchase program reflects its confidence in its financial stability and future business performance.
This press release contains forward-looking statements, and the company cautions that actual results could differ materially from those projected in any forward-looking statements due to a variety of risks and uncertainties. Ascent Industries has made these statements as of today and does not undertake any obligation to update them.
Investors and the public are reminded that this news is based on a press release statement from Ascent Industries Co.
In other recent news, Ascent Industries Co., a steel pipe and tubes manufacturer, has unveiled a new stock repurchase program. The plan, disclosed in a recent SEC filing, allows the company to buy back up to $1.5 million of its common stock until February 28, 2025. The repurchase plan is set to be executed under Rule 10b5-1, which allows companies to repurchase their shares without violating insider trading regulations. A broker will be put in charge of buying shares on behalf of Ascent within the specified terms and limitations of the plan. Ascent has expressed that subsequent trading plans may be considered after the expiration of the current one. The company’s periodic reports, including Forms 10-Q and 10-K, will keep investors informed about the repurchases. This move aligns with Ascent’s commitment to prudent capital management and its strategy to enhance shareholder value.
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