ROSH-HA'AYIN, Israel - Kornit Digital Ltd . (NASDAQ:KRNT), a leader in digital fashion and textile production technologies, has announced a share repurchase program authorizing up to $100 million of the company's ordinary shares. This initiative is part of Kornit's capital allocation strategy and follows $65 million in buybacks since 2023, signaling the Board's confidence in the company's long-term growth potential and commitment to shareholder value.
The repurchase program allows for share buybacks through various methods, including open market purchases and privately negotiated transactions, in compliance with U.S. securities laws and regulations. The program does not require the company to repurchase any specific number of shares and may be suspended or discontinued at the company's discretion.
Repurchases are set to begin after a 30-day creditor objection period, a procedural step mandated by Israeli regulations. The timing and volume of repurchases will depend on several factors, such as Kornit's share price, market conditions, financial results, and liquidity.
Kornit Digital, with a global presence and serving customers in over 100 countries, is known for its comprehensive solutions that include digital printing systems, inks, and fulfillment services. The company expects to fund the repurchase program with its available cash reserves.
This press release includes forward-looking statements, which are subject to risks and uncertainties. Factors that could influence the company's actual results include creditor objections to the share repurchase program and the ability to continue developing and selling new products effectively.
The information in this article is based on a press release statement from Kornit Digital Ltd.
InvestingPro Insights
In the wake of Kornit Digital Ltd.'s announcement regarding its share repurchase program, an analysis of the company's financial health and market performance offers valuable insights. Kornit Digital (NASDAQ:KRNT) has been actively returning value to its shareholders, not only through the buyback initiative but also by maintaining a strong balance sheet. According to an InvestingPro Tip, the company holds more cash than debt, which underscores its financial stability and may reassure investors of its capacity to fund the repurchase program.
Furthermore, the company's management has demonstrated confidence in Kornit's prospects by aggressively buying back shares. This aligns with the board's belief in the company's long-term growth potential and is a positive signal for investors.
InvestingPro Data further reveals that Kornit Digital currently has a market capitalization of $866.4 million. While the company's Price/Earnings (P/E) Ratio stands at -17.91, indicating that it has been operating at a loss, the strong return over the last three months, with a price total return of 18.47%, suggests a positive trend in investor sentiment.
It's worth noting that Kornit Digital does not pay a dividend, which may make the share repurchase program a primary method of returning capital to shareholders. For those interested in deeper analysis, additional InvestingPro Tips are available, providing further insights into Kornit Digital's market performance and financial standing.
Investors and stakeholders can access a comprehensive list of InvestingPro Tips, including 10 additional insights on Kornit Digital, by visiting https://www.investing.com/pro/KRNT. These tips offer a nuanced understanding of the company's financial health and market potential, essential for making informed investment decisions.
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