ORIX Corporation (TSE: 8591; NYSE: IX), a diversified financial services group, has announced the status of its ongoing share repurchase initiative. The Tokyo-based company disclosed that between October 1, 2024, and October 31, 2024, it repurchased 2,492,700 common shares for a total cost of JPY 8,198,399,400.
This repurchase is part of a broader program authorized by the ORIX Board of Directors on May 8, 2024, which allows for the acquisition of up to 40 million shares, representing approximately 3.5% of the total outstanding shares, excluding treasury shares. The maximum expenditure for this program is set at 50 billion yen, and it is scheduled to run until March 31, 2025.
As of October 31, 2024, ORIX Corporation has cumulatively repurchased 11,705,200 shares at a total cost of JPY 40,096,931,550 under the current repurchase plan. The repurchases are being conducted through market purchases based on a discretionary dealing contract for the repurchase of own shares.
ORIX Corporation is an international corporation with a presence in around 30 countries and regions. The company's operations span a wide range of sectors, including financing and investment, life insurance, banking, asset management, real estate, and more.
The information provided is based on a press release statement.
In other recent news, ORIX Corporation reported substantial growth in its first quarter with a 38% increase in net income, reaching JPY86.7 billion, primarily driven by consistent earnings in the finance sector and significant profit increases in the tourism segment.
The company also disclosed the status of its ongoing share repurchase program, revealing that it has cumulatively repurchased 9,212,500 shares, spending 31.9 billion yen. This initiative is part of ORIX's strategy to enhance shareholder value.
In addition, ORIX has announced the disposal of its shares as restricted stock, scheduled for December 2024. The recipients of this restricted stock are employees of ORIX and its subsidiaries, as part of an incentive plan to promote medium- to long-term corporate value enhancement. The shares will be subject to a transfer restriction period from December 2, 2024, to November 30, 2027.
BofA Securities, after resuming coverage on ORIX Corp, issued a Neutral rating. The firm outlined the challenges in forecasting earnings due to significant volatility in profits, particularly from the private equity investment segment.
These are the recent developments in ORIX Corporation's operations.
InvestingPro Insights
ORIX Corporation's recent share repurchase initiative aligns well with its strong financial position and commitment to shareholder value. According to InvestingPro data, the company boasts a market capitalization of $24.78 billion and a P/E ratio of 10.31, indicating a potentially undervalued stock relative to its earnings. This is further supported by an InvestingPro Tip highlighting that ORIX is trading at a low P/E ratio relative to its near-term earnings growth.
The company's financial strength is evident in its profitability over the last twelve months and its ability to maintain dividend payments for 33 consecutive years, as noted in the InvestingPro Tips. With a dividend yield of 2.63% and a impressive dividend growth of 17.61% in the last twelve months, ORIX demonstrates its commitment to returning value to shareholders alongside its share repurchase program.
ORIX's position as a prominent player in the Financial Services industry is reinforced by its solid financials, including a revenue of $17.69 billion in the last twelve months and an EBITDA growth of 8.44% over the same period. These metrics underscore the company's ability to fund its share repurchase program while maintaining operational growth.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights on ORIX Corporation, with 6 more tips available on the platform.
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