TEL AVIV – Nexxen International Ltd., a company specializing in computer programming and data processing services, announced the initiation of a new share repurchase program. The Tel Aviv-based company plans to buy back $50 million of its ordinary shares, as stated in a report filed with the Securities and Exchange Commission today.
The repurchase program is part of Nexxen's strategy to manage capital allocation and shareholder value. The company, formerly known as Tremor International Ltd., has not specified a timeline for the completion of the buyback. The repurchases will be conducted in accordance with market rules and regulations.
This move comes as part of Nexxen's ongoing efforts to optimize its financial structure and return value to its shareholders. The company has been listed on the stock exchange under the ticker symbol provided in the SEC filing, and the share repurchase program will be incorporated into the company’s registration statement on Form S-8 (Registration No. 333-258731).
Nexxen International, with its principal executive offices located at 82 Yigal Alon Street, Tel Aviv, Israel, has indicated that the information contained in the report of the foreign private issuer on Form 6-K is to be incorporated by reference into the company's registration statement.
The announcement of the share repurchase program is based on a press release statement and is part of the company's filings with the SEC. Investors and stakeholders are directed to the SEC filing for further details regarding the share buyback program.
Nexxen International's Chief Financial Officer, Sagi Niri, signed the report on behalf of the company, confirming the authorization of the share repurchase program. The company's business phone is listed as 972-3-545-3900 for any official inquiries.
In other recent news, Nexxen outperformed expectations in its third-quarter results for 2024, leading Needham to maintain a Buy rating and raise the stock's price target to $9.50. The company's decision to delist from the London Stock Exchange (LON:LSEG), along with a significant 52% growth in Connected TV revenue and increased use of data in its advertising campaigns, were noted as contributing factors. Furthermore, Nexxen anticipates $10 million in political revenue in the second half of 2024, and an improvement in EBITDA margins was highlighted.
Nexxen has also announced plans to initiate a $50 million share repurchase program. The company's intention to delist from the AIM market will be discussed at the upcoming Annual General Meeting. RBC Capital has demonstrated confidence in Nexxen's future, maintaining an Outperform rating and raising its price target from $9 to $11.
In addition, Nexxen has set a date for the release of its third quarter 2024 financial results, providing investors with the opportunity to assess the company's recent performance. The company's directors have also engaged in transactions under Rule 10b-5 as part of their planned financial management strategies. These are all recent developments in Nexxen's financial journey.
InvestingPro Insights
Nexxen International's recent announcement of a $50 million share repurchase program aligns with the company's strong financial position and growth prospects. According to InvestingPro data, Nexxen boasts a market capitalization of $557.22 million and has demonstrated impressive revenue growth, with quarterly revenue increasing by 12.6% in Q3 2024.
InvestingPro Tips highlight that management has been aggressively buying back shares, which is consistent with the newly announced repurchase program. This strategy is often employed when a company believes its shares are undervalued, potentially signaling confidence in future performance.
The company's financial health is further underscored by its strong balance sheet, with InvestingPro noting that Nexxen holds more cash than debt. This solid financial footing provides the flexibility to pursue share buybacks while maintaining operational stability.
Investors may find Nexxen's valuation metrics intriguing. With a P/E ratio of 40.57 and a PEG ratio of 0.22 for the last twelve months as of Q3 2024, the company appears to be trading at a reasonable valuation relative to its growth prospects. An InvestingPro Tip suggests that Nexxen is trading at a low P/E ratio relative to near-term earnings growth, which could indicate potential upside for investors.
For those interested in a deeper analysis, InvestingPro offers 13 additional tips on Nexxen International, providing a comprehensive view of the company's financial health and market position.
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