Electromed authorizes $10 million share repurchase program

NEW PRAGUE, Minn. - Electromed, Inc. (NYSE American:ELMD), a medical device company with a market capitalization of $208.4 million, announced Tuesday that its Board of Directors has authorized a new share repurchase program of up to $10 million of the company’s common stock. According to InvestingPro data, management has been consistently executing share buybacks, reflecting confidence in the company’s future.

The authorization follows the exhaustion of Electromed’s previous share repurchase program, which was completed in the fourth quarter of fiscal 2025.

According to the company, management will determine the timing and amount of any repurchases based on market conditions and other factors. The repurchases may be executed through open market transactions, privately negotiated deals, block trades, or other legal means.

"Underpinning the decision to repurchase shares is Electromed’s strong operational performance and robust cash reserves," said Jim Cunniff, Electromed’s President and Chief Executive Officer, in the press release. The company’s financial strength is evident in its impressive 16.97% revenue growth and healthy current ratio of 4.31, indicating strong liquidity position. InvestingPro analysis shows the company maintains a "GREAT" financial health score of 3.7 out of 5.

The Board of Directors will periodically review the program and may adjust its terms and size as needed.

Electromed manufactures and sells airway clearance therapy products, including the SmartVest Airway Clearance System, for patients with compromised pulmonary function. The company is headquartered in New Prague, Minnesota, and was founded in 1992. The stock has delivered a strong 39.52% return over the past year, though InvestingPro’s Fair Value analysis suggests the shares may be slightly overvalued at current levels.

The announcement was made in a company press release statement.

In other recent news, Electromed has reported strong financial results for the fourth quarter of 2025. The company achieved an earnings per share of $0.25, surpassing the analyst forecast of $0.22, and posted a record quarterly revenue of $17.4 million, exceeding expectations of $16.6 million. These results have led to increased confidence among analysts, with Lake Street Capital Markets assuming coverage with a Buy rating and a price target of $36.00. The research firm highlighted Electromed’s performance in the bronchiectasis market and the potential for growth in High-Frequency Chest Wall Oscillation therapy. Additionally, Roth/MKM has raised its price target for Electromed to $35.00 from $29.00, maintaining a Buy rating. This adjustment follows Electromed’s projection of double-digit revenue growth and expanded operating leverage for fiscal year 2026. These developments reflect a positive outlook for Electromed as it continues to capitalize on its market opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.