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DALLAS - Match Group (NASDAQ: NASDAQ:MTCH), a leading provider of digital technologies designed for dating and making connections with a market capitalization of $4.03 billion, announced today at its inaugural Investor Day the initiation of a quarterly dividend program and a new $1.5 billion share buyback authorization. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment. The event, which included presentations from top executives, outlined the company's strategic priorities and vision for the future, as well as its medium-term financial outlook.
The newly declared cash dividend of $0.19 per share is payable on January 21, 2025, to shareholders of record as of January 6, 2025. Match Group anticipates continuing this quarterly dividend, subject to market conditions and Board approval, with the potential to increase the amount in the future. Based on the current share price of $46.80, the annual dividend yield is projected to be over 2%. Want deeper insights? InvestingPro subscribers have access to comprehensive financial analysis and 8 additional key ProTips about Match Group's performance.
In addition to the dividend, Match Group's Board of Directors has authorized a share repurchase program of up to $1.5 billion in common stock, to commence after the existing authorization, with $247 million remaining, is utilized. The company aims to return at least 75% of its free cash flow to shareholders through buybacks and has already repurchased $753 million of stock under the current program.
During the Investor Day, CEO Bernard Kim highlighted the company's leadership in the dating industry and its commitment to innovation, particularly through artificial intelligence, to drive growth. With a robust gross profit margin of 71.58% and a healthy current ratio of 2.75, Match Group's financial outlook for Q4 2024 was also updated, with revenues expected to meet previous forecasts, excluding foreign exchange impacts. Discover more detailed metrics and analysis with InvestingPro's comprehensive research report, part of their coverage of over 1,400 US stocks. However, including FX impact, total and Tinder direct revenues may fall short of prior expectations, primarily due to larger-than-anticipated FX impacts. Despite this, the company still forecasts a 36% adjusted operating income margin for the full year 2024.
The event's presentations and Q&A sessions were live-streamed and will be available for replay on the Match Group Investor Relations website.
This announcement, based on a press release statement, underscores Match Group's strategy to deliver consistent, long-term value to its shareholders while maintaining a strong focus on its portfolio of brands and technological advancements.
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IAC and its subsidiary Angi Inc. have outlined a strategic growth plan, including a planned spin-off of Angi, which is anticipated to enhance profitability and focus on customer experience. The companies reported a 16% growth in digital revenue and a 26% increase in advertising revenue for IAC. These are recent developments in the company's operations.
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