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PARIS - Sequans Communications S.A. (NYSE:SQNS) announced Wednesday it has repurchased 755,349 American Depositary Shares (ADSs), representing approximately 5% of outstanding ADSs and half of its previously authorized repurchase program. The company, with a current market capitalization of approximately $94 million, is making this move while trading near its 52-week low of $5.76.
The company completed the repurchases at an average price of $6.40 per ADS, including fees and commissions. Following these transactions, Sequans has approximately 15.2 million ADSs outstanding, or 16.3 million including potential exercise of pre-funded warrants. InvestingPro data shows the stock is trading at a low Price/Book multiple of 0.42, with technical indicators suggesting the stock is in oversold territory.
According to the company, the share repurchases were funded through proceeds from bitcoin sales and operational funds. Sequans reported that the reduction in outstanding ADSs generated a 4.4% yield in bitcoin per outstanding ADS since its November 4 earnings call. This strategy comes as the company operates with a significant debt burden of $117.74 million and a debt-to-equity ratio of 0.52.
"Although the digital asset market has experienced recent pressure, we view this environment as an opportunity to strengthen our balance sheet and advance the next phase of our Bitcoin Treasury strategy," said Dr. Georges Karam, CEO of Sequans. Despite reporting negative earnings of -$10.24 per share over the last twelve months, the company maintains a strong buy consensus among analysts.
The company, which describes itself as a provider of 5G/4G cellular IoT semiconductor solutions and a pioneer in Bitcoin treasury, indicated it remains committed to increasing bitcoin per share through ADS repurchases at prices below net asset value. Analyst price targets for SQNS range from $13 to $35, suggesting significant upside potential from current levels according to InvestingPro data, which offers comprehensive analysis on over 1,400 US stocks through its Pro Research Reports.
Sequans Communications, founded in 2003 and headquartered in France, specializes in wireless 4G/5G cellular technology for the Internet of Things while also maintaining a Bitcoin treasury strategy.
The information in this article is based on a company press release statement.
In other recent news, Sequans Communications reported a challenging third quarter in 2025. The company announced revenues of $4.3 million, which represents a 47.3% decline from the previous quarter. Sequans also posted a net loss of $6.7 million, or $0.48 per diluted ADS. Despite the disappointing financial results, the company expressed optimism about future growth, particularly in its IoT business. Sequans has plans to significantly reduce operating expenses by 2026. While the company remains focused on its growth strategy, these recent developments highlight the financial hurdles it currently faces.
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