Aterian authorizes $3 million stock buyback program

SUMMIT, N.J. - Aterian, Inc. (NASDAQ:ATER), a consumer products company with a market capitalization of $15.38 million, has announced a share repurchase program authorizing the buyback of up to $3.0 million of its common stock over the next two years, concluding on March 18, 2027. The initiative comes as the stock trades at a low revenue multiple, according to InvestingPro data, with shares down over 51% in the past year. The company’s move reflects management’s belief in its undervalued stock and commitment to delivering shareholder value.

CEO Arturo Rodriguez expressed confidence in the company’s future and financial stability, noting that the decision to repurchase shares underscores the long-term value creation Aterian is aiming for. While InvestingPro data shows the company maintains a healthy current ratio of 1.92 and holds more cash than debt, analysts anticipate sales may decline in the current year. Rodriguez highlighted the company’s progress over the past 18 months and its positioning for sustainable growth starting this year.

The repurchase plan will be executed through various methods deemed appropriate by the company, including open market transactions, block purchases, and privately negotiated transactions, in compliance with federal securities laws.

While the plan details the potential buyback of shares, there is no guarantee on the exact number of shares to be repurchased. The company reserves the right to adjust, renew, suspend, or terminate the program at any time without prior notice.

Aterian’s portfolio includes several leading e-commerce brands such as Squatty Potty, hOmeLabs, and Mueller Living, selling products across major online marketplaces like Amazon, Walmart, and Target, and on their direct-to-consumer websites.

The announcement of the share repurchase program is based on a press release statement and should be considered in light of various risk factors, including the company’s ability to maintain sufficient cash resources for growth strategies and the unpredictability of share repurchases.

Investors are urged to view this information with caution as it contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. For a comprehensive analysis of Aterian’s financial health and growth prospects, including 13 additional key ProTips and detailed metrics, investors can access the full company research report on InvestingPro.

In other recent news, Aterian, Inc. reported significant financial improvements following its strategic overhaul over the past 18 months. The company announced a notable reduction in net loss by $56.3 million, or 84%, in the third quarter of 2024 compared to the same period in 2023. Additionally, Aterian achieved positive adjusted EBITDA for the second and third quarters of 2024. Preliminary results for the fourth quarter of 2024 show net revenue between $24.2 million and $25.0 million, aligning with the higher end of their previous guidance, and the company expects to report breakeven adjusted EBITDA for this period. Aterian’s cash position improved from $16.1 million to approximately $18 million. The company is also exploring product sourcing alternatives outside of China in response to U.S. trade policy uncertainties. Aterian’s omnichannel sales approach has expanded, with several brands now available on Target+, complementing their presence on platforms like Amazon.com, Walmart.com, and Mercado Libre. The company plans to discuss more details on its 2025 outlook during its financial results conference call scheduled for mid-March.

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