Wingstop Inks $125M Accelerated Share Repurchase Agreement
Portfolio Pulse from Shivani Kumaresan
Wingstop Inc has entered into an accelerated share repurchase agreement with Morgan Stanley & Co. LLC to repurchase $125.0 million of Wingstop common stock. The agreement is part of Wingstop's previously announced $250.0 million share repurchase program. After completion, $125.0 million will remain available under the program. The company is funding the repurchase with cash on hand and will receive an initial share delivery of approximately 567,000 shares. The final settlement is scheduled to occur no later than the end of fiscal year 2023.
August 24, 2023 | 2:44 pm
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POSITIVE IMPACT
Wingstop's accelerated share repurchase agreement could potentially increase the company's stock price in the short term. The company's shares are already trading higher by 2.52%.
Share repurchase programs often lead to an increase in the stock price as they reduce the number of shares in circulation, thereby increasing earnings per share. This news is highly relevant to Wingstop as it directly involves the company's financial actions. The importance is high as this could significantly impact the company's stock price. The confidence in this analysis is high based on the known effects of share repurchase programs.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100