BEIJING - JD (NASDAQ:JD).com, Inc. (NASDAQ:JD and HKEX: 9618 (HKD counter) and 89618 (RMB counter)), a prominent technology and service provider with a focus on supply chain innovations, has completed the repurchase of approximately 2.8% of its ordinary shares outstanding as of December 31, 2023. During the quarter ending March 31, 2024, the company bought back 87.5 million Class A ordinary shares, equivalent to 43.8 million American Depository Shares (ADSs), at a total cost of US$1.2 billion.
The repurchase activity took place in the open markets, involving both NASDAQ and the Hong Kong Stock Exchange, and was executed under the company’s publicly announced share repurchase programs.
By the end of the first quarter of 2024, JD.com had repurchased shares amounting to US$2.1 billion under the program that expired on March 17, 2024. Following this, under a new share repurchase program effective until March 18, 2027, the company has bought back shares worth approximately US$0.5 billion.
This new program has a remaining balance of US$2.5 billion for potential future repurchases as of March 31, 2024. The repurchase initiative is part of JD.com's strategy to manage capital allocation and shareholder value.
JD.com operates a sophisticated retail infrastructure aiming to allow consumers the convenience of purchasing products anytime and anywhere. The company also extends its technology and infrastructure to various partners and industries, enhancing productivity and innovation across numerous sectors.
The information in this article is based on a press release statement from JD.com, Inc.
InvestingPro Insights
As JD.com, Inc. (NASDAQ:JD) progresses with its share repurchase programs, investors may find the following metrics and insights derived from InvestingPro valuable for evaluating the company's current financial position:
JD.com's market capitalization stands at a robust $39.46 billion, reflecting its significant presence in the technology and retail sectors. The company's P/E ratio is currently at 12.98, which suggests that its shares are trading at a reasonable earnings multiple. When looking at the last twelve months as of Q4 2023, the adjusted P/E ratio further dips to 10.49, potentially indicating an attractive valuation for investors seeking growth at a reasonable price.
Despite facing challenges with gross profit margins, which are reported at 8.77% for the last twelve months as of Q4 2023, JD.com remains a prominent player in the Broadline Retail industry. The company's revenue growth during the same period was 3.67%, a testament to its capacity to expand its operations and maintain a steady increase in sales.
For those considering an investment in JD.com, it is noteworthy that the company holds more cash than debt on its balance sheet, providing a level of financial stability that might appeal to cautious investors. Moreover, the company has been profitable over the last twelve months, and analysts predict it will continue to be profitable this year.
One of the InvestingPro Tips highlights that JD.com is trading at a low revenue valuation multiple, which could be an enticing factor for value-oriented investors. Additionally, the company has experienced a strong return over the last three months, with a 17.65% price total return, showcasing a potential rebound in investor confidence.
For those interested in further insights, there are additional InvestingPro Tips available that can offer deeper analysis into JD.com's financial health and market potential. By using the coupon code PRONEWS24, readers can get an extra 10% off a yearly or biyearly Pro and Pro+ subscription to access these valuable tips and make more informed investment decisions.
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