Seaboard Corporation launches $100 million stock buyback

MERRIAM, Kan. - Seaboard Corporation (NYSE AMERICAN: SEB), a diversified agribusiness and transportation firm, announced today the initiation of a share repurchase program. The company’s Board of Directors has authorized the repurchase of up to $100 million of its outstanding common stock by the end of 2027. The announcement comes as Seaboard’s shares trade near their 52-week low at $2,459.70, with InvestingPro analysis suggesting the stock is currently undervalued.

The repurchase program allows Seaboard to buy back shares through various methods such as open-market transactions, block trades, and privately negotiated purchases. It may also involve a trading plan to be determined in the future. These transactions are subject to federal and other applicable laws. For investors seeking deeper insights, InvestingPro offers additional analysis with 6 key investment tips for Seaboard Corporation.

Seaboard has clarified that the program does not commit the company to purchase any specific number of shares. The timing and volume of repurchases will be at the discretion of company management and will depend on several factors. These include the market price of the shares, general market conditions, alternative investment opportunities, the company’s financial health, and legal requirements. The company maintains a strong financial position with a current ratio of 2.52, indicating ample liquidity to meet short-term obligations while pursuing this share repurchase initiative.

Shares that are repurchased under the program will be retired and returned to the status of authorized and unissued shares. Seaboard will provide updates on the repurchase activity in its periodic filings with the Securities and Exchange Commission (SEC), as mandated by the Securities Exchange Act of 1934.

The announcement also included forward-looking statements regarding the repurchase program. Seaboard cautioned that these statements are based on current expectations and assumptions and are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those projected.

Seaboard Corporation operates in multiple sectors, including pork processing, biofuel production, and cargo shipping within the United States. Its international operations encompass commodity merchandising, milling, farming, power generation, and sugar and alcohol production. With a market capitalization of $2.39 billion and a price-to-book ratio of 0.51, the company’s diversified business model continues to demonstrate resilience in challenging market conditions.

This share repurchase program is part of the company’s broader strategy and financial management. The information regarding this announcement is based on a press release statement issued by Seaboard Corporation.

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