SoFi CEO enters prepaid forward contract on 1.5 million shares
LAFAYETTE, La. - Viemed Healthcare, Inc. (NASDAQ:VMD), a provider of in-home post-acute respiratory care services with a market capitalization of $265.6 million, announced today a new share repurchase initiative. The Board of Directors has approved a plan to buy back up to 1,976,441 common shares, around 5% of the total outstanding as of March 31, 2025. This program is set to run through June 2026. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment, making the timing of this buyback particularly strategic.
The repurchases will occur in the open market or through block purchases, adhering to securities laws, and will be subject to daily volume restrictions. CEO Casey Hoyt highlighted the company’s solid financial results and strategic acquisitions, such as the upcoming purchase of Lehan’s Medical, as evidence of Viemed’s commitment to disciplined capital allocation. The company’s financial strength is reflected in its impressive 58.7% gross margin and conservative debt-to-equity ratio of 0.05, according to InvestingPro data. Hoyt also pointed to the company’s strong liquidity position, including an untouched $55 million credit facility, which enables these buybacks and supports growth initiatives.
Shares acquired through this program will be cancelled, potentially enhancing shareholder value. The exact number of shares repurchased and the timing will depend on market conditions, and the company reserves the right to suspend the program as necessary.
Viemed specializes in delivering non-invasive ventilators and other respiratory care services directly to patients’ homes, focusing on high-touch and high-tech solutions. The company’s approach includes therapy, education, and counseling provided by clinical practitioners. This business model has driven impressive revenue growth of 20% over the last twelve months, earning the company a "GREAT" overall financial health score from InvestingPro, which offers comprehensive analysis of over 1,400 US stocks through its Pro Research Reports.
The share repurchase announcement is based on a press release statement and is subject to risks and uncertainties that could affect the company’s actual results. These factors include market conditions, regulatory changes, and operational risks, among others. The forward-looking statements in the press release are based on information currently available to the company and are qualified by cautionary statements regarding potential variations in outcomes. Notably, analysts maintain a Strong Buy consensus on the stock, with multiple additional bullish signals available through InvestingPro’s detailed metrics and analysis.
Investors are advised that the information provided is based on the company’s press release and should consider the associated risks detailed in Viemed’s regulatory filings with the SEC and Canadian securities authorities.
In other recent news, Viemed Healthcare reported surpassing analyst expectations for its Q4 2024 earnings, achieving an earnings per share of $0.10, compared to the forecasted $0.09. The company’s revenue reached $60.7 million, exceeding the anticipated $58.5 million. This strong performance contributed to a 23% increase in full-year revenue, totaling $220 million. Additionally, Viemed Healthcare announced a definitive agreement to acquire Lehan’s Medical Equipment for a base purchase price of $26 million, with additional contingent payments estimated at $2.2 million. The acquisition is expected to close in the third quarter of 2025 and aims to strengthen Viemed’s market presence and diversify its product offerings.
Furthermore, Viemed Healthcare’s shareholders approved several significant proposals during the Annual General and Special Meeting, including amendments to the company’s long-term incentive plan and the election of directors. The appointment of Ernst & Young LLP as the independent auditors for the fiscal year ending December 31, 2025, was also confirmed. The company plans to focus on organic growth and potential mergers and acquisitions to bolster its market position, projecting net revenue between $254 million and $265 million for 2025. The strategic moves reflect Viemed’s commitment to enhancing its corporate governance and expanding its services in the healthcare sector.
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