BUENOS AIRES – Cresud (BCBA:CRESm) Sociedad Anónima Comercial, Inmobiliaria, Financiera y Agropecuaria (NASDAQ: CRESY, BYMA:CRES), a leading real estate company in Argentina with a market capitalization of $850 million, has reported its recent activities under its share repurchase program. According to the company's latest filing with the Comision Nacional de Valores and Bolsas y Mercados Argentinos, Cresud has acquired 450,000 of its common shares on Wednesday, with the settlement occurring today.
The shares were purchased at a price of ARS 1,462.6717 per share, totaling an investment of ARS 658,202,255.00. With this latest transaction, Cresud has now repurchased a total of 1,411,964 common shares.
This figure represents approximately 29.72% of the company's approved repurchase program, indicating a substantial move towards capital return to its shareholders. According to InvestingPro data, the company currently offers a significant 7.34% dividend yield, further demonstrating its commitment to shareholder returns.
The share repurchase is part of Cresud's broader strategy to enhance shareholder value. Share repurchase programs are often interpreted as a sign that a company's leadership believes its shares are undervalued and that buying back its own stock is a worthwhile investment.
The stock has shown remarkable momentum, with InvestingPro reporting a 64% price return over the past six months, though technical indicators suggest the stock may be in overbought territory.
Cresud's business encompasses a variety of sectors including real estate, agricultural, financial, and commercial operations. The company's filing did not specify the intended duration or total size of the repurchase program, leaving room for further transactions.
In other recent news, Buenos Aires-based real estate company Cresud Inc. has been active in managing its financial operations. The company has made significant progress in its ongoing share repurchase program, acquiring 961,964 of its common shares, which accounts for approximately 19.59% of the total shares authorized for repurchase.
In addition, Cresud has issued Series XLVII notes in the local Argentine capital market, raising $64.4 million with an interest rate of 7.00%, set to mature on November 15, 2028.
The company has also altered the terms of its outstanding warrants, increasing the number of shares that can be acquired per warrant and reducing the exercise price per share. Cresud's shareholders approved financial documents for the fiscal year ending June 30, 2024, agreeing on a net income allocation of approximately 70.8 billion Argentine pesos, which includes a substantial cash dividend distribution of ARS 45 billion.
Cresud has also sold a portion of its "Los Pozos" property in Salta Province, Argentina, for a total of $2.23 million. Additionally, the company issued Series XLVI notes, raising an equivalent of USD 28.6 million.
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