WisdomTree Completes Repurchase Of Non-Voting Preferred Shares Convertible Into 13.1M Shares Of WisdomTree Common Stock From A Subsidiary Of The World Gold Council
Portfolio Pulse from Benzinga Newsdesk
WisdomTree, Inc. (NYSE:WT) has completed the repurchase of non-voting preferred shares convertible into 13.1 million shares of common stock from Gold Bullion Holdings, a subsidiary of the World Gold Council, for $84.4 million. The transaction is 7% accretive to 2024 consensus EPS estimates and eliminates potential future overhang on WisdomTree's stock. The repurchase is part of WisdomTree's proactive actions, including a gold royalty buyout in May 2023, which was 15% accretive to earnings. The repurchase agreement terms are detailed in WisdomTree's Current Report on Form 8-K filed with the SEC.
November 20, 2023 | 9:20 pm
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WisdomTree repurchased preferred shares convertible into 13.1M common shares, which is expected to be 7% accretive to 2024 EPS estimates and removes potential stock overhang.
The repurchase of shares is directly related to WisdomTree and is expected to have a positive impact on the company's earnings per share, which is a key metric for investors. The removal of potential stock overhang also suggests a more stable and controlled stock price outlook. The confidence level is high due to the clear financial metrics provided and the direct involvement of the company in the transaction.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100