Today, Hurco Companies Inc. (NASDAQ:HURC), a manufacturer specializing in industrial instruments for measurement, display, and control, announced an extension to its share repurchase program. The company's Board of Directors has approved an amendment that will prolong the program for an additional two years, now set to expire on November 10, 2026.
The share repurchase program, which allows Hurco to buy back up to $25 million of its common stock, had $21.7 million remaining available for repurchases as of today. The company may conduct these repurchases on the open market or through privately negotiated transactions, adhering to all applicable laws, regulations, and contractual obligations.
This buyback program is part of Hurco's ongoing strategy to manage its capital effectively and deliver value to its shareholders. Share repurchase programs like this one are common among public companies and can potentially increase earnings per share and return surplus cash to shareholders.
The announcement was made through an 8-K filing with the Securities and Exchange Commission, which also included no changes to other terms of the repurchase program. The company has not specified any specific timing for the repurchases, indicating that they will take place from time to time as conditions allow.
Investors and market watchers often view share repurchase programs as a sign of confidence by company management in the firm's financial health and future prospects. By reducing the number of shares outstanding, such programs can also have the effect of boosting the stock price, although this is not guaranteed.
Hurco has been incorporated in Indiana and has been a player in the industrial applications and services sector. The company's common stock is listed on The Nasdaq Stock Market LLC under the ticker symbol HURC.
In other recent news, Hurco Companies, Inc. and Universal Robots have unveiled a novel automation solution aimed at tackling the skilled labor shortage in the manufacturing sector. The solution, Conversational Automation Job Manager, integrates Hurco's CNC machine controls with Universal Robots' cobot technology, enabling swift job changes and reducing reliance on manual labor. This partnership is expected to simplify the adoption of automation technology in manufacturing.
In a separate development, Hurco has decided to suspend its regular quarterly cash dividend on common stock. This strategic move is intended to boost financial resilience amid market volatility, improve cash flow, and allow for strategic reinvestment in core operations and research into emerging technologies. During the fiscal year ending October 31, 2024, Hurco had paid two quarterly cash dividends of $0.16 per share.
Hurco's President and CEO, Greg Volovic, emphasized that this difficult decision is anticipated to enhance the company's capital allocation across various strategies. The company's board plans to evaluate the possibility of future dividends based on several factors, including the company's performance, financial health, and market conditions.
InvestingPro Insights
As Hurco Companies Inc. (NASDAQ:HURC) extends its share repurchase program, investors may be interested in a snapshot of the company's financial health and market performance. According to InvestingPro data, Hurco holds a market capitalization of $116.16 million. While the company has faced challenges with profitability, reflected in a negative P/E ratio of -9.2 over the last twelve months as of Q3 2024, it does exhibit financial stability with its cash position, as it holds more cash than debt on its balance sheet.
InvestingPro Tips highlight that Hurco has maintained a consistent record of dividend payments for 12 consecutive years, which could be a sign of the company's commitment to returning value to shareholders. Additionally, Hurco's liquid assets exceed its short-term obligations, suggesting a comfortable liquidity position. On the performance front, Hurco has delivered a strong return over the last three months, with a 15.11% price total return, indicating a recent uptrend in its stock performance.
For investors seeking a deeper analysis, there are additional InvestingPro Tips available that could provide further insights into Hurco's financial and operational strategies. These tips, along with real-time metrics, can be found at InvestingPro.
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