inTEST renews $10 million stock repurchase plan

MT. LAUREL, N.J. - inTEST Corporation (NYSE American: INTT), a global provider of testing and process technology solutions, has announced the renewal of its stock repurchase plan, with approximately $9 million remaining for buybacks. The company’s Board of Directors initially authorized the repurchase of common stock on November 17, 2023, with an expiration date of November 17, 2024, and a limit of $10.0 million. The announcement comes as the stock has shown significant volatility, with a 52-week range of $6.28 to $14.35, and a notable 26.7% price increase over the past six months, according to InvestingPro data.

Since the commencement of the plan, inTEST has repurchased 141,117 shares, totaling $1,038,850. The remaining balance, $8,961,150, is available for additional repurchases. The repurchase plan is a strategic move for capital management, allowing the company to buy back shares from the open market, in privately negotiated transactions, or under a Rule 10b5-1 plan, depending on market conditions and other factors. The company maintains a healthy financial position with a current ratio of 2.26 and operates with moderate debt levels, as indicated by a debt-to-equity ratio of 0.28. InvestingPro analysis reveals 8 additional key financial metrics and insights available for subscribers.

As of October 31, 2024, inTEST had around 12.4 million shares of common stock outstanding. The company specializes in providing solutions for various industries, including automotive/EV, defense/aerospace, industrial, life sciences, and security, as well as the semiconductor manufacturing industry. With last twelve months revenue of $122 million and a gross profit margin of 43.7%, inTEST aims to create value by offering innovative solutions to complex problems, aiming to grow its market reach and customer base. Two analysts have recently revised their earnings expectations upward, with price targets ranging from $10 to $16 per share.

The press release contains forward-looking statements, which are predictions based on current management expectations and are subject to risks and uncertainties that could cause actual results to differ materially. These statements do not guarantee future performance and are based on information available as of the date of the release. inTEST emphasizes its commitment to grow organically and through acquisitions, while also managing potential challenges such as supply chain issues and changing economic conditions. For a comprehensive analysis of inTEST’s financial health, growth prospects, and valuation metrics, investors can access the detailed Pro Research Report available exclusively on InvestingPro, which covers over 1,400 US stocks with expert insights and actionable intelligence.

This news is based on a press release statement from inTEST Corporation.

In other recent news, inTEST Corporation has announced a strategic consolidation of its operations, resulting in the closure of its Netherlands facility. This move aims to enhance efficiency and reduce operating costs, with the subsidiary Videology Imaging Corporation centralizing operations in Mansfield, Massachusetts. The consolidation is expected to incur cash charges related to severance and other termination benefits of approximately $350,000, with additional costs ranging from $200,000 to $300,000 for moving expenses and lease termination.

In another development, Oak Ridge Financial has initiated coverage on inTEST with a Buy rating and a price target of $14.00. The research firm highlighted inTEST’s efforts to diversify its business beyond the semiconductor industry, noting that the market has not yet adjusted the company’s valuation to reflect these changes. Oak Ridge Financial anticipates a positive shift in order and revenue trends for inTEST later in the year. Investors are watching closely to see if inTEST can capitalize on these expected trends to deliver value as predicted by Oak Ridge Financial.

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