Celsius Holdings, Inc. has just announced a new share repurchase program, authorizing the repurchase of up to $300 million of its outstanding common stock. This move comes as the company seeks to take advantage of its strong balance sheet and cash generation to opportunistically repurchase shares while continuing to invest in growth initiatives across its functional beverages portfolio.
The company's CEO, John Fieldly, highlighted the flexibility this authorization provides, allowing them to act when there is a disconnect between Celsius' market valuation and the underlying strength of its business fundamentals.
The share repurchases under this program may be made at the company’s discretion from time to time in open market transactions, privately negotiated transactions, or other means, including through rule 10b5-1 trading plans. The timing and number of shares repurchased under the new program will depend on a variety of factors, including stock price, trading volume, and general business and market conditions.
It's worth noting that the repurchase program does not obligate the company to purchase any shares, has no expiration date, and may be modified, suspended, or terminated at any time. This indicates that Celsius Holdings is keeping its options open and will adapt its repurchase strategy based on prevailing market conditions.
This announcement reflects the company's confidence in its financial position and its commitment to creating value for shareholders. As a result of these announcements, the company's shares have moved -7.86% on the market, and are now trading at a price of $41.52. If you want to know more, read the company's complete 8-K report here.
