The Joint Corp stock surges on repurchase plan

Published 05/06/2025, 14:04
© Reuters.

Investing.com -- Shares of The Joint Corp (NASDAQ:JYNT) soared 12.6% following the announcement of a stock repurchase program authorized by the company’s board of directors. The chiropractic care provider disclosed that the repurchase program, expected to commence in August 2025, will allow for the buyback of up to $5 million of its outstanding common stock.

The move is seen as a vote of confidence from the board in the company’s long-term strategy and refranchising program. CEO Sanjiv Razdan highlighted the initiative as a reflection of the board’s belief in the company’s franchise model and its potential for future cash flow generation. Razdan also noted that the current stock price does not fully recognize the long-term valuation of the company, indicating that the repurchase program is aimed at delivering value to shareholders.

The repurchase may occur through open market transactions, privately negotiated transactions, or other means as per securities laws, depending on market conditions and other factors. The company’s finance committee will have discretion over the timing, volume, and amount of repurchases. Although the program does not commit The Joint Corp to a specific number of shares, it is set with a termination date of June 3, 2027, and can be suspended or discontinued at any time.

The announcement represents a strategic effort by The Joint Corp to manage its capital allocation and bolster shareholder returns. The program’s initiation is still more than two years away, but the market’s immediate response suggests investors are optimistic about the company’s financial management and future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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