BRP Announces The Renewal Of Its Normal Course Issuer Bid
Portfolio Pulse from Benzinga Newsdesk
BRP Inc. (NASDAQ:DOOO) has received approval from the Toronto Stock Exchange to renew its normal course issuer bid (NCIB), allowing the company to repurchase up to 3,231,999 subordinate voting shares, about 10% of the public float, from December 5, 2023, to December 4, 2024. The repurchases will be made through the TSX or alternative Canadian trading systems and may include open market transactions, pre-arranged crosses, exempt offers, and private agreements. Daily purchases are capped at 25% of the average daily trading volume, with additional block purchases allowed weekly. The APP with a designated broker will enable share purchases during blackout periods. In the previous NCIB, BRP repurchased 3,519,398 shares at an average price of $104.31.
November 30, 2023 | 1:09 pm
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POSITIVE IMPACT
BRP Inc. is authorized to repurchase up to 3,231,999 of its subordinate voting shares, signaling confidence in the company's value and potentially leading to a positive impact on the stock price due to reduced share supply.
Share buybacks often lead to a positive short-term impact on a company's stock price as they can indicate management's confidence in the company's prospects and financial stability. By reducing the number of shares available in the market, buybacks can increase earnings per share and potentially lead to a higher stock price. However, the actual impact will depend on market conditions and investor perception.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100