Moatable Inc., a prepackaged software services company, announced today that its board of directors has approved an extension of its share repurchase program. Initially set to expire on December 31, 2024, the program will now continue until December 31, 2026.
The program authorizes the repurchase of up to $15 million of the company’s shares, including American depositary shares traded under the symbol MTBLY on the OTC Pink market. As of today, Moatable Inc. has repurchased approximately $11.8 million worth of its shares.
The repurchases are conducted in the open market, adhering to Rule 10b-18 of the Securities Exchange Act of 1934, which imposes specific price, market volume, and timing constraints to prevent market manipulation. While the company is not obligated to repurchase shares, the extension provides additional time to buy back shares when management deems it beneficial for the company and its shareholders.
The decision to repurchase shares will be based on various factors, including market conditions and other investment opportunities. There is no guarantee that further repurchases will occur, but the extension allows for flexibility in the company’s capital allocation strategy.
InvestingPro Insights
The extension of Moatable Inc.’s (MTBLY) share repurchase program aligns with recent InvestingPro data and tips, providing additional context to the company’s financial strategy. According to InvestingPro Tips, management has been aggressively buying back shares, which is directly reflected in the company’s decision to extend the repurchase program. This aggressive buyback strategy is further supported by the company’s strong financial position, as InvestingPro data indicates that MTBLY holds more cash than debt on its balance sheet.
The company’s impressive gross profit margin of 77.5% for the last twelve months as of Q2 2024 suggests that Moatable Inc. has significant financial flexibility to continue its share repurchase program. Additionally, with a Price to Book ratio of 0.27, the stock appears to be trading at a discount relative to its book value, potentially making share repurchases an attractive use of capital.
For investors seeking more comprehensive analysis, InvestingPro offers 13 additional tips for MTBLY, providing a deeper understanding of the company’s financial health and market position.
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