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ORLANDO, FL - Abacus Global Management, Inc. (NASDAQ:ABL), an investment advisory firm, has announced a new stock repurchase program authorized by its Board of Directors. The company revealed on Monday that it would embark on a $15 million stock buyback initiative, which is set to be active for a period of eighteen months. The announcement comes as the stock trades at $7.12, down 27% over the past six months, with InvestingPro analysis suggesting the stock is currently undervalued.
This strategic move allows Abacus Global Management to purchase its own shares from the stock market, potentially signaling confidence in the company's value and future prospects. Stock repurchase programs are often used by companies to return value to shareholders, as they can increase earnings per share and the value of remaining shares by reducing the number of shares outstanding. According to InvestingPro data, while the company isn't currently profitable, analysts expect positive earnings this year, with two analysts recently revising their earnings estimates upward.
The company, which operates under the investment advice industry and is incorporated in Delaware, has a diverse portfolio including common stock, warrants, and fixed-rate senior notes, all traded on The NASDAQ Capital Market LLC. With a market capitalization of $682 million and a strong current ratio of 2.55, the company maintains healthy liquidity despite recent cash burn. Abacus Global Management has undergone previous name changes, known formerly as Abacus Life, Inc., and before that as East Resources Acquisition Co. Get deeper insights into ABL's financial health and growth potential with a comprehensive Pro Research Report, available exclusively on InvestingPro.
The details of this repurchase plan were disclosed in a Form 8-K filed with the Securities and Exchange Commission (SEC) on April 10, 2025. The filing provides transparency on the company's financial decisions and is a routine requirement for public companies to report significant events that shareholders should be aware of.
It is important to note that the information disclosed in the Regulation FD Disclosure section of the 8-K filing is not deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor is it subject to the liabilities of that section. Furthermore, the disclosed information is not to be considered incorporated by reference into any prior or future filings under the Securities Act of 1933 or the Exchange Act, unless specifically stated.
The CEO of Abacus Global Management, Jay Jackson, signed off on the report, ensuring that the company meets the SEC's stringent reporting requirements. The repurchase program is part of the company's capital allocation strategy and provides a clear indication of the company's commitment to managing its capital effectively for the benefit of its shareholders.
This press release statement serves as the source of information for the details provided in this article.
In other recent news, Abacus Global Management reported a significant increase in its financial performance for the fourth quarter of 2024, with total revenue rising by 40% year-over-year to $33.2 million. The company's full-year revenue surged by 69% to $111.9 million, highlighting strong growth driven by strategic acquisitions and product innovations. Piper Sandler analyst Crispin Love adjusted the price target for Blue Owl Capital, lowering it to $21 from $27, while maintaining an Overweight rating, citing the company's resilient business model focused on management fees. Abacus Global Management also revised its executive compensation structure, specifically amending the vesting schedule of restricted stock units for employees, including CFO William H. McCauley, Jr. Additionally, Abacus Global Management's CEO Jay Jackson emphasized the company's strategic advantages and optimistic guidance for 2025, projecting adjusted net income growth of up to 68%. The firm is also expanding its offerings through the acquisition of Carlisle Management Company and FCF Advisors, enhancing its product portfolio with in-demand GP/LP-style funds. These developments reflect Abacus's efforts to navigate market volatility and capitalize on growth initiatives.
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