Rush Enterprises, Inc. (NASDAQ: RUSHA & RUSHB) has announced an increase of $50 million to its existing stock repurchase program, authorizing the company to repurchase up to an aggregate of $200 million of its shares of class A common stock and/or class B common stock. This decision comes as the company nears the original authorization limit of $150 million.
Despite the continued uncertainty surrounding tariffs, the ongoing freight recession, and challenging commercial vehicle market conditions, Rush Enterprises remains confident in its strong capital position, liquidity, and ability to generate strong free cash flow. W.M. "Rusty" Rush, the Chairman, Chief Executive Officer, and President of the company, expressed the company's confidence in its solid financial performance during the recent challenging industry and market conditions, stating that this confidence allows Rush Enterprises to continue investing in its growth strategy while also returning capital to its shareholders.
The stock repurchases will be made at times and in amounts as deemed appropriate by the company, and may be executed through open market transactions at prevailing market prices, privately negotiated transactions, or by other means in accordance with federal securities laws. The actual timing, number, and value of repurchases under the stock repurchase program will be determined by management in its discretion and will depend on various factors, including market conditions, stock price, and other considerations. It's important to note that the stock repurchase program expires on December 31, 2025, and may be suspended or discontinued at any time.
Rush Enterprises, Inc. operates Rush Truck Centers, which represent truck and bus manufacturers, including Peterbilt, International, Hino, Isuzu, Ford, Dennis Eagle, IC Bus, and Blue Bird. The company's network of commercial vehicle dealerships spans more than 150 locations in 23 states and Ontario, Canada. These centers offer an integrated approach to meeting customer needs, from sales of new and used vehicles to aftermarket parts, service, body shop operations, financing, insurance, leasing, and rental. Additionally, Rush Enterprises' operations provide CNG fuel systems, telematics products, vehicle up-fitting, chrome accessories, and tires.
The decision to increase the stock repurchase program reflects the company's commitment to enhancing shareholder value and its confidence in the ability to navigate challenging market conditions while maintaining a focus on growth and strategic investments. As a result of these announcements, the company's shares have moved 0.41% on the market, and are now trading at a price of $49.14. Check out the company's full 8-K submission here.
