NEW YORK - Progyny, Inc. (NASDAQ:PGNY), a provider of fertility and family building benefits solutions, has announced the approval of a new stock repurchase program by its Board of Directors, where the company may buy back up to $100 million of its common stock. This initiative follows a previous program announced on February 29, 2024, and will be financed using the company’s available cash balances.
The repurchase of shares will be conducted in the open market and may also be executed through plans that align with Rule 10b5-1 under the Securities Exchange Act of 1934. The decision to buy back shares, the timing of purchases, and the volume of shares to be repurchased will be subject to market conditions, stock price, and other factors as determined by Progyny.
The company has stated that there is no guarantee on the number of shares to be repurchased or the prices at which any repurchases will occur. The share repurchase program is not bound by a specific end date and may be suspended or discontinued by the company at any given time.
Progyny is recognized for offering comprehensive solutions in fertility, family building, and women’s health benefits. It is trusted by some of the nation’s top employers, health plans, and benefits purchasers with the goal of helping individuals realize their dreams of family and maintaining optimal health. The company, headquartered in New York City, has received accolades for its growth and leadership, including recognition on lists like the CNBC Disruptor 50 and Forbes’ Best Employers.
The information for this report is based on a press release statement by Progyny, Inc.
InvestingPro Insights
Progyny, Inc.'s recent announcement of a stock repurchase program aligns with the company's strategy, as indicated by one of the InvestingPro Tips, which highlights management's aggressive stance on buying back shares. This decision to invest in their own stock could be seen as a sign of confidence from the company's leadership in its future prospects.
In addition to this strategic move, Progyny's financial health appears robust, with the company holding more cash than debt on its balance sheet, another key point from the InvestingPro Tips. This strong liquidity position supports the feasibility of the repurchase program without compromising the company's financial stability.
Looking at the real-time data from InvestingPro, Progyny's market capitalization stands at approximately $2.55 billion, with a relatively high price-to-earnings (P/E) ratio of 41.73. The company's revenue has grown by nearly 27% over the last twelve months as of Q1 2024, indicating a solid trajectory in its financial performance.
Investors interested in a deeper analysis can find additional InvestingPro Tips that provide more nuanced insights into Progyny's financial metrics and market performance. For instance, the company's stock price movements have been quite volatile, and the stock has fared poorly over the last month, with a one-month price total return of -16.94%. Yet, with the company expected to be profitable this year, these short-term fluctuations may not deter investors looking at the long-term potential.
For those considering an investment in Progyny, or simply wanting to stay informed on the company's performance, InvestingPro offers a comprehensive set of tips. There are 14 additional InvestingPro Tips available, which can be accessed by visiting https://www.investing.com/pro/PGNY. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering valuable insights to make informed investment decisions.
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