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NEW YORK - Silvercrest Asset Management Group Inc. (NASDAQ:SAMG), a New York-based investment firm, has announced a new stock repurchase program, revealing plans to buy back up to $12 million of its Class A common stock over the coming year. The company's decision, authorized by its Board of Directors, allows for share repurchases depending on market conditions and other relevant factors, as per the company's discretion.
The repurchase program is not a commitment to buy back any specific number or dollar amount of shares. Silvercrest can suspend or discontinue the program at any time. The firm stated that any repurchases would be conducted in the open market and based on the company's evaluation of market conditions and share prices.
This buyback initiative comes amidst a broader context of financial firms managing their capital allocation strategies. Repurchasing shares is a common method for companies to return value to shareholders, potentially stabilizing or increasing the stock price by reducing the number of shares outstanding.
Silvercrest, which was established in April 2002, operates as an independent, employee-owned registered investment adviser. The company offers a range of investment advisory and family office services to wealthy families and institutional investors. With offices across the United States, Silvercrest reported assets under management of $33.4 billion as of June 30, 2024.
The company's press release contains forward-looking statements regarding the execution and effects of the repurchase program. These statements are based on current expectations and are subject to risks and uncertainties that could cause actual results to differ materially. Factors that may impact the outcome include market conditions, regulatory considerations, and the company's operational performance.
Investors are reminded that the information regarding Silvercrest's stock repurchase program is based on a press release statement and should be considered in the context of the company's broader financial health and market performance.
In other recent news, Silvercrest Asset Management Group Inc. reported its second-quarter earnings for 2024, with a blend of challenges and opportunities. The company noted a decline in discretionary assets under management (AUM) by $1.1 billion, while total AUM increased by 4.7% year-over-year to $33.4 billion. Silvercrest's quarterly revenue also saw a 4.2% rise compared to the previous year, totaling $31 million.
Despite an increase in expenses, Silvercrest is investing in its future with new hires and anticipates positive flows from its institutional equity and Outsourced Chief Investment Officer (OCIO) capabilities. The company also reported a decrease in the pipeline for new institutional business opportunities to $1 billion. However, OCIO assets remain at $1.5 billion with a promising pipeline of potential clients.
Silvercrest anticipates a multibillion-dollar opportunity in the coming years and plans to provide updates on growth in the next quarter. These are among the recent developments at Silvercrest, a company that continues to navigate a complex market environment with strategic investments in talent and technology.
InvestingPro Insights
As Silvercrest Asset Management Group Inc. (NASDAQ:SAMG) embarks on its stock repurchase initiative, a closer look at the company's financial health through InvestingPro data suggests a stable foundation for its capital allocation strategy. With a market capitalization of approximately $217 million and a price-to-earnings (P/E) ratio of 17.27, Silvercrest shows a valuation that is reflective of its earnings capabilities. The P/E ratio has remained consistent, as indicated by the last twelve months as of Q2 2024, standing at 17.36.
In terms of shareholder returns, Silvercrest has demonstrated a commitment to maintaining and growing its dividends. An InvestingPro Tip highlights that the firm has raised its dividend for 6 consecutive years and has maintained dividend payments for 12 consecutive years. This consistency is backed by the company's ability to cover interest payments with its cash flows, suggesting financial prudence and a shareholder-friendly approach. Moreover, Silvercrest's dividend yield as of the latest data stands at 5.13%, which is quite attractive for income-seeking investors.
On the operational front, Silvercrest's gross profit margin for the last twelve months as of Q2 2024 is at a healthy 36.8%, indicating a strong ability to manage costs relative to revenue. This is further supported by the company's operating income margin of 14.04% for the same period. With analysts predicting the company will be profitable this year, as per another InvestingPro Tip, investors may find reassurance in the firm's financial stability and outlook.
For those interested in deeper analysis and additional insights, InvestingPro offers further tips on Silvercrest, which can be accessed by visiting their dedicated page on the platform. As of the latest update, there are several more tips available that can help investors make more informed decisions regarding their investment in Silvercrest.
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