Adtalem Global Education Announces New $300M Share Repurchase Program
Portfolio Pulse from Benzinga Newsdesk
Adtalem Global Education Inc. (NYSE:ATGE) has announced a new $300 million share repurchase program, following the completion of its previous $300 million repurchase program. The company has reduced its shares outstanding by 23% since February 2022 at an average price of $39.85 per share. The new program is part of Adtalem's 'Growth with Purpose' strategy and reflects confidence in its long-term outlook, supported by strong operating cash flow. The repurchases will be funded through cash balances and operating cash generation, and may occur through various methods, including open market purchases and privately negotiated transactions. Adtalem will also announce its fiscal 2024 second-quarter results on February 1, 2024.
January 19, 2024 | 1:05 pm
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POSITIVE IMPACT
Adtalem Global Education's new $300M share repurchase program demonstrates the company's financial strength and commitment to shareholder value. The reduction of shares by 23% since February 2022 may positively influence the stock price in the short term.
Share repurchase programs 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 financial health and future prospects. By reducing the number of shares outstanding, earnings per share may increase, potentially making the stock more attractive to investors. The completion of the previous repurchase program and the announcement of a new one suggest that Adtalem is actively managing its capital to enhance shareholder value.
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