AudioEye announces $12.5 million buyback plan

TUCSON, AZ - AudioEye, Inc., a company specializing in prepackaged software, has revealed a new share repurchase program. The Board of Directors has authorized the buyback of up to $12.5 million of its common stock, with plans to complete the repurchases by January 24, 2027. The announcement comes as the company's stock has shown remarkable performance, delivering a 246% return over the past year according to InvestingPro data.

The repurchase program, announced on Thursday, will be financed through the company's working capital, cash generated from operations, and potential borrowing proceeds. According to the statement, the repurchases will be conducted on the open market or through privately negotiated transactions, depending on market conditions and other factors. The company maintains impressive gross profit margins of nearly 79% and operates with a moderate level of debt, as revealed by InvestingPro analysis.

The initiative allows the company to reacquire shares of its common stock, par value $0.00001 per share, but does not obligate AudioEye to purchase any specific number of shares. The program's flexibility is underscored by the provision that it can be modified, paused, or terminated at any time.

AudioEye's decision to implement a stock repurchase program reflects a common corporate strategy to manage capital allocation. Repurchasing shares can potentially increase the value of remaining shares by reducing the total number outstanding, assuming demand remains constant.

The company's shares are traded on the Nasdaq Capital Market under the ticker symbol (NASDAQ:AEYE). This repurchase plan is subject to various laws and regulations, as well as contractual obligations that may impact the timing, manner, and extent of the buybacks.

With analyst price targets ranging from $25 to $37, and multiple analysts revising earnings estimates upward, InvestingPro subscribers can access detailed analysis and 12 additional ProTips about AudioEye's future prospects through the platform's comprehensive research reports.

The information disclosed in this article is based on the contents of a recent SEC filing by AudioEye, Inc.

In other recent news, AudioEye, a company specializing in digital accessibility solutions, has been the focus of several significant developments. The company reported a record revenue of $8.9 million in its third quarter of 2024, along with an impressive adjusted EBITDA of $2 million. For the fourth quarter of 2024, AudioEye projects its revenues to be in the range of $9.7 million to $9.8 million.

Needham initiated coverage on AudioEye with a Buy rating, citing the company's market leadership and the integration of artificial intelligence as key factors for their positive outlook. This was echoed by H.C. Wainwright who maintained a Buy rating on AudioEye shares and upgraded the price target to $37.00.

AudioEye also announced a secondary offering of its shares, priced at $24.00 each, led by Needham & Company and supported by Roth Capital Partners (WA:CPAP). Furthermore, the company fortified its balance sheet, providing flexibility for potential mergers and acquisitions.

Notably, the company's recent acquisition of ADA Site Compliance and strategic partnerships with Finalsite and CivicPlus are expected to significantly boost revenue growth.

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