Today, Cresud (BCBA:CRESm) Inc. (NASDAQ:CRESY, BYMA:CRES), a prominent real estate firm in Argentina with a market capitalization of $862 million, disclosed the recent acquisition of common shares as part of its ongoing repurchase program. According to InvestingPro data, the company has demonstrated strong momentum with a 69% return over the past six months. The transaction occurred on Thursday, with settlement following on Friday.
The company successfully bought 366,949 common shares at a price of ARS 1,480.3271 per share, amounting to a total cost of ARS 543,204,555.00. This latest repurchase is a substantial move within the approved program, bringing the total number of shares bought back to 3,662,623. This figure represents approximately 80.45% of the shares Cresud had aimed to repurchase. The company maintains a healthy dividend yield of 6.95% and has increased its dividend for three consecutive years, as reported by InvestingPro.
Cresud's active buyback program is part of its broader strategy to manage capital and potentially enhance shareholder value. The repurchase plan is conducted in accordance with market conditions and within the regulatory frameworks set by financial authorities.
The company's decision to reacquire a significant portion of its shares demonstrates confidence in its own financial health and future prospects. Currently trading near its 52-week high of $14.22, Cresud maintains a GOOD overall Financial Health Score according to InvestingPro analysis, which offers 8 additional valuable insights about the company's performance. Share repurchases can often lead to an increase in the value of remaining shares by reducing the supply and potentially improving financial ratios.
This report is based on a press release statement and provides a factual account of Cresud's latest financial activity as filed with the Comision Nacional de Valores and Bolsas y Mercados Argentinos on December 13, 2024, and in accordance with the Securities and Exchange Act of 1934. The company, with its principal executive offices located in Buenos Aires, Argentina, is recognized in the real estate sector under the standard industrial classification code 6500.
In other recent news, Cresud Inc. has made substantial progress in its share repurchase program. The company has bought back approximately 72.09% of the total shares authorized for repurchase under the current plan. Additionally, Cresud has seen a successful exercise of warrants by holders, leading to an increase in its capital stock and an inflow of $1,809,070, resulting in the registration of an additional 4,501,293 ordinary shares.
Further, Cresud has issued Series XLVII and XLVI notes in the local Argentine capital market, raising $64.4 million and $28.6 million respectively. The company's shareholders approved financial documents for the fiscal year ending June 30, 2024, agreeing on a net income allocation of approximately 70.8 billion Argentine pesos.
Other notable actions include the sale of a portion of its "Los Pozos" property in Salta Province, Argentina, for a total of $2.23 million. These recent developments demonstrate Cresud's active engagement in various financial activities aimed at managing its capital and returning value to its shareholders.
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