Daktronics expands stock buyback program by $10 million

Brookings, SD-based Daktronics Inc. (NASDAQ:DAKT), a manufacturer in the miscellaneous manufacturing industries sector with a market capitalization of $600 million, has announced an expansion of its stock repurchase program. On Monday, the company’s Board of Directors approved an additional $10 million for the buyback of its outstanding common stock, as disclosed in a recent SEC filing.

The decision, made on March 4, 2025, comes as approximately $20 million remained available for share repurchases under the existing program. According to InvestingPro data, the company maintains a strong financial position with more cash than debt on its balance sheet and a healthy current ratio of 2.43, providing ample liquidity for the buyback program. Daktronics has stated that the repurchases may occur through various means, including open market purchases, private transactions, and other methods, subject to market conditions and regulatory requirements.

The company’s management retains discretion over the specifics of the repurchase strategy, including the timing, volume, and nature of the share buybacks. With a conservative total debt-to-capital ratio of 0.07 and liquid assets exceeding short-term obligations, the company appears well-positioned to execute the buyback program. The repurchase plan is subject to market conditions, securities laws, and other influencing factors, and may be paused or terminated at any time.

Daktronics has emphasized that while the program is active, any repurchases will be conducted in compliance with all applicable securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934.

The company has not committed to repurchasing any specific number of shares, and the actual number will depend on several factors. The information is based on a press release statement filed with the SEC.

This move by Daktronics signals a potential return of capital to shareholders and reflects the company’s confidence in its financial position. Share buyback programs are often interpreted as a sign that a company believes its stock is undervalued and that it is a good use of its cash reserves.

Investors and market watchers will be observing the impact of this program on the company’s stock performance on the Nasdaq Global Select Market, where Daktronics shares are traded.

In other recent news, Daktronics Inc. reported its financial results for the third quarter of fiscal year 2025, which showed a significant decline in earnings and revenue. The company posted an earnings per share loss of $0.36, missing the expected profit of $0.075, while revenue fell to $149.51 million, below the forecasted $171 million. This marks a challenging period for Daktronics, with orders decreasing by 2.7% and net sales dropping by 12.2% year-over-year. The company is implementing a business transformation program aiming for $18 million in cost savings by FY2028.

In addition to financial updates, Daktronics announced leadership changes, with Reece Kurtenbach stepping down as President and CEO. Brad Wiemann has been appointed as the interim President and CEO, and Howard Atkins has taken on the role of Acting CFO and Chief Transformation Officer. The company has also introduced a new Employee Retention and Protection Plan to support executive retention during this transition period. Furthermore, the Board has approved a Retention RSU Agreement to incentivize certain executives.

These developments reflect Daktronics’ strategic efforts to navigate current challenges and position itself for future growth. The company is focusing on digital transformation initiatives and exploring merger and acquisition opportunities to enhance its market presence. Analyst firms have not provided updates on stock upgrades or downgrades in these reports, but the company remains optimistic about achieving long-term growth targets.

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