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New York - CI&T Inc (NYSE: CINT), a leader in technology transformation services, has announced the renewal of its share repurchase program as of today. The Board of Directors has approved the buyback of up to five million of its outstanding class A common shares. This decision is part of the company's strategy to manage its stock-based compensation plan and support its mergers and acquisitions activities.
The repurchase of shares may occur periodically through open market purchases, privately negotiated transactions, or other methods, including trading plans that comply with Rule 10b5-1 under the Securities Exchange Act of 1934. The program will adhere to applicable securities laws and is subject to various factors, including market conditions, regulatory requirements, stock prices, and other relevant considerations.
CI&T has stated that the program is set to continue through December 31, 2025, but it retains the right to suspend or discontinue the program at any point. There is no obligation for CI&T to purchase any specific number of shares.
The repurchase program underscores CI&T's commitment to its shareholders and reflects the company's confidence in its long-term growth prospects. CI&T, with over 6,700 professionals in nine countries, specializes in AI, strategy, customer experience, software development, cloud services, and data. It is recognized by industry analysts such as Forrester for its expertise in modern application development services.
This article is based on a press release statement.
In other recent news, CI&T Inc. has showcased robust financial performance with significant strides in revenue growth. The company reported a 10% sequential revenue growth in Q3 and an improved adjusted EBITDA margin of 19.5%, according to Canaccord Genuity. Furthermore, CI&T's third quarter was marked by a record net revenue of BRL 622.2 million, a 17.6% increase year-over-year, with its top 10 clients contributing to a 25.3% revenue growth.
CI&T is actively making strategic moves to lean into Generation Artificial Intelligence (GenAI) through its FLOW initiative, a factor that TD Cowen believes could enhance the company's competitive edge. The company's focus on AI-driven initiatives has also been emphasized by CEO Cesar Gon, who expects these initiatives to drive future growth, particularly in the U.S. market.
TD Cowen has initiated coverage on CI&T with a Buy rating, while Canaccord Genuity has maintained a Buy rating, both reflecting analyst optimism about the company's potential. Despite facing challenges in employee onboarding and retention, CI&T continues to show promise in the nearshore digital engineering market with its ability to attract and retain blue-chip clients.
The company anticipates Q4 2024 net revenue to be between BRL 620 million and BRL 655 million, projecting a 22% growth year-over-year.
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