MIAMI - Laureate Education, Inc. (NASDAQ: NASDAQ:LAUR), a provider of higher education programs, has announced a new stock repurchase initiative allowing for the buyback of up to $100 million of its common stock. The company plans to finance the repurchases using its free cash flow, excess cash, and available liquidity, including the capacity under its Revolving Credit Facility.
The newly authorized repurchase program follows the completion of a similar $100 million stock buyback that the company had previously announced in February 2024. With this new program, Laureate Education aims to continue its strategy of returning capital to shareholders, which has amounted to nearly $3 billion since 2019 through share repurchases, cash distributions, and dividends.
The timing and volume of repurchases will be determined by market conditions and in compliance with the Securities Exchange Act of 1934, utilizing various methods such as open market transactions, privately negotiated deals, block trades, or other legal avenues. The company may also adopt a Rule 10b5-1 trading plan to facilitate the repurchases.
Laureate Education's board of directors will maintain oversight of the repurchase program, with the flexibility to alter, suspend, or discontinue it as deemed necessary.
The company's press release includes forward-looking statements that are subject to risks and uncertainties, and actual results may differ from current expectations. These statements are not guarantees of future performance and are based on current assumptions.
Laureate Education operates five higher education institutions in Mexico and Peru, serving approximately 450,000 students through various degree programs, both on-campus and online. The company emphasizes academic quality, innovation, and employability outcomes, with a goal of making higher education more accessible.
This news is based on a press release statement from Laureate Education, Inc.
InvestingPro Insights
As Laureate Education, Inc. (NASDAQ: LAUR) embarks on a new stock repurchase program, investors are closely monitoring its financial health and market performance. According to InvestingPro data, Laureate Education has a market capitalization of $2.33 billion and is trading at an attractive P/E ratio of 12.2. This valuation is supported by a P/E ratio adjusted for the last twelve months as of Q2 2024, which stands at 11.53, indicating a favorable outlook on earnings relative to the company's share price.
One of the InvestingPro Tips highlights that the company is trading at a low P/E ratio relative to near-term earnings growth, suggesting that the stock could be undervalued based on its earnings trajectory. Additionally, analysts predict the company will be profitable this year, a sentiment reinforced by its profitability over the last twelve months. These factors may provide investors with confidence in the company's ability to generate value, potentially justifying the repurchase initiative as a means to enhance shareholder returns.
The company's revenue growth also paints a positive picture, with a 13.59% increase over the last twelve months as of Q2 2024, demonstrating its ability to expand its financial base. This growth is coupled with a strong gross profit margin of 35.93%, which indicates efficient management of costs relative to revenue. With a return on assets of 9.22%, Laureate Education shows a robust ability to generate profits from its asset base.
Investors interested in a deeper analysis can find additional InvestingPro Tips on Laureate Education, which provide further insights into the company's financial position and market potential. These tips are available through the dedicated InvestingPro platform at https://www.investing.com/pro/LAUR.
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