ANDOVER, Mass. - Byrna Technologies Inc. (NASDAQ:BYRN), a developer and manufacturer of less-lethal personal security solutions, has initiated a $10 million stock repurchase program, as confirmed by the company's Board of Directors. The repurchase authorization allows Byrna to buy back shares of its common stock over the next twenty-four months.
The decision for the buyback stems from what Byrna's CEO, Bryan Ganz, describes as the company's undervalued shares in the market, despite strong operating performance and sequential revenue growth.
Ganz expressed confidence in the long-term sustainability of Byrna's business model and marketing strategies, viewing the repurchase as an opportunity to enhance shareholder value.
Byrna has experienced significant revenue growth, with the second quarter of 2024 setting a new company record, surpassing the first quarter's performance.
This growth trajectory has bolstered the management's belief in the company's future prospects and its commitment to driving shareholder returns.
The repurchase program will be conducted on the open market, with the timing and volume of purchases depending on market conditions and in compliance with federal and state laws and the Securities Exchange Act of 1934's Rule 10b5-1.
Byrna plans to fund the buybacks through its existing cash balance and operational cash flow, ensuring that the program will not interfere with the company's operational capabilities or strategic growth initiatives.
Although no guarantees have been made regarding the exact number or total value of the shares to be repurchased, Byrna has a history of stock buybacks, having repurchased $17.5 million of stock in previous programs, including one in 2022.
Byrna Technologies specializes in the development, manufacture, and sale of innovative, less-lethal personal security devices, such as the Byrna SD, a handheld CO2-powered launcher. The company's products are marketed towards consumers, private security, and law enforcement agencies.
This news is based on a press release statement and includes forward-looking statements that involve risks and uncertainties. Byrna's actual results could differ materially from those projected in the forward-looking statements due to various risk factors, including market conditions and the company's financial performance.
In other recent news, Byrna Technologies has reported robust growth for Q2 2024, with a 76% increase in net revenue to $20.3 million. The company's net income for the same period was $2.1 million, a significant contrast to the previous year's net loss. Gross profit also rose to $12.6 million, making up 62% of net revenue.
These developments follow Byrna's successful celebrity endorsement strategy and the sale of its intellectual property for a 40-millimeter launcher to Facta Global, which retained Byrna's exclusive U.S. selling rights and secured a royalty on global sales.
In addition to these performance highlights, Byrna has announced plans for expansion, including the opening of company-owned retail stores and the establishment of a U.S.-based ammunition production facility. The company's cash reserves stand at $24.8 million and it carries no debt.
Byrna's management is optimistic about sustaining growth and improving margins in 2024 and 2025 through strategic partnerships and new advertising channels.
Despite a delay in the launch of a smaller launcher until the second half of 2025, Byrna continues to focus on capturing a larger market share within the gun owners demographic.
InvestingPro Insights
Byrna Technologies Inc. (NASDAQ:BYRN) has made a significant move to repurchase $10 million of its common stock, signaling management's belief in the intrinsic value of the company. This decision comes at a time when Byrna's financial metrics present a mixed but interesting picture. According to InvestingPro data, Byrna has a market capitalization of approximately $193.38 million and has been experiencing robust revenue growth, with the last twelve months as of Q2 2024 showing a 23.34% increase. This growth is even more pronounced on a quarterly basis, with a staggering 76.13% revenue growth noted in Q2 2024.
The company's gross profit margins are impressive, standing at 57.67% for the same period, which underscores the efficiency of Byrna's operations and its ability to translate sales into profits before accounting for overhead costs. Despite these strong growth figures, Byrna's stock has faced significant volatility, with price returns reflecting a sharp decline over the last three months at -37.94%, but an impressive annual return of 143.97%. This volatility is echoed in one of the InvestingPro Tips, which points out that the stock price movements are quite volatile.
Another InvestingPro Tip worth noting is that Byrna holds more cash than debt on its balance sheet, which is a reassuring sign for investors, especially in the context of the stock repurchase program. This indicates that the company is in a position to buy back shares without compromising its financial stability or growth initiatives.
For investors looking for more in-depth analysis, InvestingPro offers a range of additional tips on Byrna Technologies. Currently, there are 14 more InvestingPro Tips available, which can provide further insights into the company's financial health and market performance. To explore these tips, interested readers can visit the InvestingPro platform.
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