LONDON - Clarivate Plc (NYSE:CLVT), a global provider of transformative intelligence currently trading at $5.11 with a market capitalization of $3.63 billion, today announced a new share repurchase initiative. According to InvestingPro analysis, the company appears undervalued based on its Fair Value metrics, despite experiencing a challenging year with a -44.82% year-to-date return. The company's Board of Directors has authorized the repurchase of up to $500 million of its outstanding ordinary shares. The buyback program is set to run for two years, from January 1, 2025, through December 31, 2026.
This new repurchase program will replace the current one, which is due to expire at the end of 2024. Under the existing program, Clarivate has repurchased $300 million of ordinary shares, with $200 million of that occurring in the latter half of 2024. InvestingPro data highlights this as part of the company's high shareholder yield strategy, while maintaining impressive gross profit margins of 66.12%. Additionally, the company has made significant strides in reducing its debt, prepaying $75 million of term-loan debt during the fourth quarter, totaling $133 million in prepayments for the year.
Matti Shem Tov, Clarivate's Chief Executive Officer, expressed the Board's confidence in the company's growth trajectory and financial performance, stating that the repurchase program aligns with their Value Creation Plan. He emphasized a balanced capital allocation approach, which includes returning capital to shareholders and reducing debt.
The repurchase program does not commit Clarivate to any specific dollar amount or number of shares and may be altered, paused, or discontinued at any time, according to the company's discretion. Share repurchases will be made through open-market transactions or other methods as permitted by shareholder authorization and subject to market conditions, share availability, price, alternative capital uses, and regulatory requirements.
The company's communication includes forward-looking statements subject to risks, uncertainties, and assumptions that could cause actual results to differ materially. These statements are not guarantees of future performance and are based on current market materials and management's expectations. For a deeper understanding of Clarivate's financial health and future prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro's detailed research reports, which provide expert insights on over 1,400 US stocks.
Clarivate is known for providing enriched data, insights, analytics, workflow solutions, and expert services across various sectors, including academia, government, intellectual property, and life sciences.
The information reported is based on a press release statement from Clarivate Plc.
In other recent news, Clarivate announced its third quarter 2024 financial performance during a recent earnings call led by Mark Donohue. The company issued forward-looking statements, cautioning that actual results may deviate from projections due to various risks and uncertainties. No explicit bullish statements or underperformance were mentioned during the call.
The company also highlighted the existence of known and unknown factors that could potentially impact its actual results, performance, or achievements. The call included a question-and-answer session, but specific details were not provided in the summary.
These developments underscore the company's cautious stance towards its future performance. Investors are advised to review the presentation accompanying the earnings call on Clarivate's website for more detailed information.
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