Valens Semiconductor approves $15 million buyback

HOD HASHARON, Israel - Valens Semiconductor (NYSE:VLN), a prominent player in high-performance connectivity solutions with a market capitalization of $262 million, announced the approval of a share repurchase program by its Board of Directors. According to InvestingPro data, the company maintains a strong financial position with more cash than debt on its balance sheet. The program authorizes the repurchase of up to $15 million of the company’s ordinary shares, following the completion of necessary Israeli regulatory procedures.

The repurchase initiative, defined as a "distribution" under the Israeli Companies Law, allows the company’s creditors a 30-day period to raise objections, as per the Companies Regulations. With a robust current ratio of 8.2, Valens’ liquid assets significantly exceed its short-term obligations, providing ample flexibility for this initiative. The buybacks will be conducted intermittently through open market purchases, private transactions, block trades, or other methods in compliance with applicable securities laws, including Rule 10b5-1 and Rule 10b-18, under the Securities Exchange Act of 1934.

Valens Semiconductor’s management emphasizes that the repurchase program does not obligate the company to acquire a specific number or dollar amount of shares and may be adjusted, paused, or terminated at any time. This announcement is not an offer to purchase or a solicitation of an offer to buy any securities.

The company is known for its high-performance chipsets, which are integral to a variety of applications such as advanced audio-video installations, next-generation videoconferencing, and the evolution of Advanced Driver Assistance Systems (ADAS) and autonomous driving. Valens’ technology underpins industry standards like HDBaseT® and MIPI A-PHY.

It’s important to note that the information in this article is based on a press release statement, and the forward-looking statements included in the original press release involve risks and uncertainties. These statements are not guarantees of future performance and are subject to factors such as industry cyclicality, inflation, interest rates, customer inventory absorption, competition, and technological advancements. Valens Semiconductor has outlined these and additional risk factors in its Form 20-F filed with the SEC on February 28, 2024.

Investors and shareholders are advised to consider these factors when evaluating the company’s strategic decisions and market position. Based on InvestingPro analysis, Valens currently appears slightly overvalued compared to its Fair Value estimate. For deeper insights into Valens’ financial health, growth prospects, and over 30 key financial metrics, subscribers can access the comprehensive Pro Research Report, part of InvestingPro’s coverage of 1,400+ US equities.

In other recent news, Valens Semiconductor has been the subject of noteworthy developments. The company has received a positive outlook from ThinkEquity, which initiated coverage on the company’s stock with a Buy rating. The firm highlighted Valens Semiconductor’s strategic execution and its use of industry-leading technology as key factors for potential long-term success. This endorsement comes as Valens continues to build on its technological advancements and market position.

Simultaneously, Valens Semiconductor has unveiled ambitious growth strategies and long-term financial objectives. The company anticipates a significant growth opportunity in high-growth industries and aims to enhance shareholder returns through a combination of organic growth and strategic acquisitions. It has set robust revenue targets for 2029, with total revenue expected to be between $220 million and $300 million. The company also provided revenue guidance for 2025, forecasting a 25% to 33% year-over-year growth.

These recent developments showcase Valens Semiconductor’s proactive approach to market engagement and its focus on sustainable growth. As the company continues to expand its product offerings and market presence, investors will likely keep a close watch on its progress.

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