BELLEVUE, Wash. - Smartsheet Inc . (NYSE: NYSE:SMAR), a prominent enterprise work management platform, has announced a stock repurchase program that authorizes the buyback of up to $150 million of its outstanding Class A common stock.
The repurchase plan, which was announced today, allows for transactions through open market purchases, block trades, or privately negotiated deals, in accordance with legal and regulatory guidelines.
The company's management retains discretion over the specifics of the repurchase strategy, including timing, volume, and pricing, which will be influenced by market conditions, legal requirements, and other operational factors.
Smartsheet has clarified that there is no minimum purchase obligation associated with the program and that it could span roughly a twelve-month period. Still, the company is not committed to repurchasing any set amount of stock and may suspend or discontinue the program at any time, based on its discretion.
The repurchase program announcement includes forward-looking statements regarding the anticipated execution and details of the buyback. Smartsheet has cautioned that actual outcomes could differ significantly due to various factors such as stock market prices, the company's financial commitments, available investment opportunities, cash flow, and broader economic conditions.
These statements are forward-looking and subject to risks and uncertainties that could cause actual events or results to differ materially.
Smartsheet, known for its enterprise work management solutions, is used by millions, including a significant portion of the Fortune 500 companies. The company aims to drive performance and innovation through its platform.
This stock repurchase program is based on information provided in a press release statement by Smartsheet and reflects the company's current plans regarding its capital allocation strategy.
The program's details and the caution regarding forward-looking statements are also outlined in Smartsheet's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended January 31, 2024.
InvestingPro Insights
In light of Smartsheet Inc.'s recent announcement of their stock repurchase program, a closer look at the company's financials through InvestingPro data and insights may offer investors a better understanding of the underlying value.
Smartsheet, with a market capitalization of $5.06 billion, demonstrates a commitment to shareholder value, despite a negative P/E ratio of -47.12, indicating investors' expectations of future growth. This is further supported by a significant gross profit margin of 80.54% over the last twelve months as of Q4 2024, reflecting the company's ability to manage its costs effectively and maintain profitability at the operational level.
Two notable InvestingPro Tips for Smartsheet include the company's impressive cash position, holding more cash than debt on its balance sheet, and the consensus among analysts that net income is expected to grow this year.
These factors may provide some confidence to investors considering the stock repurchase as a positive signal. Moreover, the company's stock is trading near its 52-week low, which could present a potential entry point for investors.
For those seeking more comprehensive analysis, there are additional InvestingPro Tips available, including insights on earnings revisions by analysts and predictions on profitability. To access these insights and more, visit https://www.investing.com/pro/SMAR and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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