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Ascent Industries Co. (NASDAQ:ACNT), a steel pipe and tubes manufacturer with a market capitalization of $130 million, has announced the adoption of a new share repurchase plan. The announcement comes as the stock trades near its 52-week high of $13, having gained over 33% in the past six months. On Thursday, the company disclosed a written trading plan under Rule 10b5-1 of the Securities Exchange Act of 1934, which will allow for the buyback of up to 1.0 million shares.
The plan is set to commence on Saturday, March 22, 2025, and will remain in effect until May 9, 2025. This strategic move enables Ascent Industries to repurchase its shares even during periods when trading restrictions are in place, which might otherwise limit such activities due to insider trading laws or company-imposed blackout periods. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 3.73, suggesting ample resources for the buyback program.
A broker, appointed by Ascent Industries, will execute the share repurchases within the specified price targets and limitations outlined in the plan. The company has indicated that after the current plan expires, it may adopt subsequent trading plans under Rule 10b5-1 to continue repurchasing its common stock as part of its stock repurchase program.
Details on the stock repurchases will be provided in the company’s periodic reports, which are filed with the Securities and Exchange Commission (SEC) as per the rules of the Exchange Act. This information is based on a press release statement.
In other recent news, Ascent Industries Co. reported its fourth-quarter 2024 earnings, falling short of analyst expectations with an EPS of $0.01 compared to the forecasted $0.03, and revenue of $40.7 million, missing the anticipated $46.4 million. Despite the earnings miss, the company noted a significant improvement in adjusted EBITDA, rising from a loss of $15.9 million in 2023 to a positive $4.0 million in 2024, and an increase in gross profit to $22.1 million from $1.5 million the previous year. Ascent also announced a definitive agreement to sell its subsidiary, Bristol Metals, LLC, to Ta Chen International, Inc. for approximately $45 million, with the transaction expected to be completed by March 31, 2025. This strategic divestiture is aimed at strengthening Ascent’s position in the specialty chemicals market. Furthermore, the company launched a new product portfolio targeting a $2.5 billion market, indicating a strategic pivot towards growth. Ascent maintained a debt-free status with a strong cash position, although it does not expect material top-line growth in the first half of 2025. Angle Advisors and Amundsen Davis, LLC were involved as financial and legal advisors for the Bristol Metals transaction, respectively.
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