Bullish indicating open at $55-$60, IPO prices at $37
Today, Superior Group of Companies, Inc. (NASDAQ:SGC), a Florida-based firm specializing in apparel and related products with a market capitalization of $178.62 million, disclosed a new share repurchase initiative. The plan, set to commence on Friday, March 21, 2025, follows a Board of Directors authorization announced on March 11, 2025. According to InvestingPro data, the company currently trades at $10.83, near its 52-week low of $10.73.
Under the 10b5-1 trading plan, the company is permitted to buy back a specified number of shares of its common stock. The repurchase is subject to certain conditions, including price, market, volume, and timing constraints, and will be executed through an independent broker. The plan is designed to comply with Rule 10b5-1(c) under the Securities Exchange Act of 1934, as amended, and will end either when the repurchase limit is reached or upon occurrence of certain specified events. This move aligns with the company’s strong track record of shareholder returns, including a notable 5.09% dividend yield and a 49-year history of consecutive dividend payments.
This strategic move allows Superior Group of Companies to potentially return value to shareholders by repurchasing and retiring its shares, which could affect the stock’s market price or improve earnings per share. The stock currently trades at a P/E ratio of 14.6, and InvestingPro analysis suggests the company is undervalued based on its Fair Value calculations. However, the company has clarified that the information regarding the repurchase plan provided in the Form 8-K is not considered "filed" for purposes of the Exchange Act and is not to be deemed incorporated by reference into any of the company’s other filings, unless explicitly stated.
The announcement in the SEC filing did not specify the exact number of shares to be repurchased or the financial terms involved. Investors and market watchers will likely monitor the execution of this plan, as it could influence the company’s stock performance on the NASDAQ. For deeper insights into SGC’s valuation and financial health metrics, access the comprehensive Pro Research Report available exclusively on InvestingPro, covering over 1,400 US stocks with expert analysis and actionable intelligence.
The information in this article is based on a press release statement.
In other recent news, Superior Uniform Group reported its fourth-quarter earnings for 2024, revealing a slight miss in both earnings per share (EPS) and revenue compared to analyst expectations. The company posted an EPS of $0.13, below the forecasted $0.17, and revenue of $145.4 million, missing the anticipated $146.53 million. Despite these results, the company experienced substantial full-year growth, with consolidated revenue and diluted EPS increasing by 435% year-over-year. Additionally, Superior Uniform Group announced a new $17.5 million stock buyback authorization and completed a small acquisition during the fourth quarter, which is expected to contribute positively to future growth. DA Davidson adjusted its price target for Superior Uniform Group from $24.00 to $20.00 but maintained a Buy rating on the company’s shares. The firm cited the company’s strategic investments in marketing and sales as potentially beneficial in the long term. Superior Uniform Group’s outlook for 2025 includes projected revenue growth of up to 5% and EPS growth of up to 12%, with expectations of back-end weighted revenue performance. These developments indicate a cautious yet optimistic approach to future growth amidst current economic uncertainties.
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