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HERZLIYA, Israel - Cognyte Software Ltd. (NASDAQ:CGNT), a provider of investigative analytics software with a market capitalization of $644 million, announced Monday its board of directors has approved a new $20 million share repurchase program after completing a previous buyback of the same amount. According to InvestingPro data, the company maintains a strong balance sheet with more cash than debt, despite not being profitable over the last twelve months.
The company completed its earlier program by repurchasing 2,094,538 ordinary shares for $20 million. The new authorization allows for additional share buybacks over the next 18 months through January 14, 2027. With annual revenue of $363 million and analysts expecting profitability this year, InvestingPro analysis suggests the stock is currently trading near its Fair Value.
The repurchase program does not obligate Cognyte to acquire any specific number of shares and may be suspended or discontinued at the company’s discretion. Buybacks may be executed through open market purchases, privately negotiated transactions, or other methods in compliance with U.S. securities laws.
Before beginning the new program, Cognyte must observe a 30-day period for creditors to object to the repurchase plan under Israeli regulations. The company plans to fund the buybacks using its balance sheet cash and ongoing cash flow.
Cognyte provides software solutions for data processing and investigative analytics to law enforcement, national security agencies, and other organizations navigating complex threat landscapes. For deeper insights into Cognyte’s financial health and growth prospects, investors can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports, available for over 1,400 US-listed companies.
The timing and value of shares to be repurchased will depend on market conditions and other factors, according to the company’s press release statement.
In other recent news, Cognyte Software Ltd. announced the acquisition of GroupSense, a digital risk protection services company, in a strategic move to expand its presence in the U.S. market. The deal involves an initial payment of approximately $4 million, with a potential earnout of up to $5 million based on future performance. Additionally, Cognyte has secured a significant three-year subscription agreement worth over $10 million annually with a national security customer in the EMEA region. This agreement will provide the agency with access to Cognyte’s advanced AI-powered solutions and continuous updates. In another development, Cognyte has entered a $5 million contract with a law enforcement agency in the EMEA region to enhance their operational effectiveness using Cognyte’s suite of solutions. The company emphasizes its commitment to providing actionable intelligence through advanced technologies like AI and big data analytics. These recent developments highlight Cognyte’s strategic efforts to expand its global reach and enhance its offerings for security and law enforcement agencies.
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