Townsquare Media, Inc. (NYSE:TSQ), a company specializing in radio broadcasting with a market capitalization of $157 million, has announced a new stock repurchase plan, approved by its Board of Directors on Monday. According to InvestingPro data, the company currently trades near its 52-week low of $9.48, while offering a substantial 7.8% dividend yield. The new plan authorizes the repurchase of up to $50 million of the company's issued and outstanding Class A common stock over the next three years, replacing a similar plan set to expire on December 16, 2024.
The "2024 Stock Repurchase Plan" follows the company's previous repurchase activities, which saw approximately $40.5 million worth of stock bought back over the past three years. InvestingPro analysis reveals the company maintains strong financial flexibility with a current ratio of 1.38 and generated $32 million in free cash flow over the last twelve months. The repurchases under the new plan will be made through open market transactions at prevailing prices or other methods in compliance with the Securities and Exchange Act of 1934, specifically Rule 10b-18.
Townsquare Media's management will decide the specifics of the repurchase transactions, such as timing, volume, and expenditure, based on various factors. These include the market price of the common stock, overall market and economic conditions, legal compliance requirements, debt covenants, and the company's financial position. The repurchases could be funded using available cash, borrowings, or potential proceeds from debt or other capital markets.
The Board of Directors will periodically review the plan and may alter its terms, suspend it, or end it depending on the company's needs and market conditions. Details of the share repurchases will be reported in the company's periodic filings with the SEC, including Forms 10-Q and 10-K, as mandated by the Exchange Act.
This strategic move by Townsquare Media demonstrates the company's ongoing efforts to manage its capital and return value to its shareholders. The announcement is based on a press release statement and reflects the company's latest financial strategy as reported to the SEC. For deeper insights into TSQ's valuation and 7 additional ProTips, including detailed financial health metrics, visit InvestingPro, where you'll find comprehensive research reports covering 1,400+ US stocks.
In other recent news, Townsquare Media reported a slight uptick in net revenue to $115.3 million in its Q3 2024 earnings call, with digital revenue accounting for 52% of the total. The company's digital advertising segment, which grew by 5%, and programmatic advertising, which increased by 10%, were key growth drivers. Despite a decline in national broadcast advertising, Townsquare Interactive is projected to show year-over-year revenue growth in Q4.
The company also announced plans for debt refinancing in early 2025, anticipating favorable interest rate shifts. This development comes alongside a strong cash flow that led to $24 million in share buybacks and $36 million in bond buybacks. A partnership with SummitMedia for a white-label digital programmatic advertising solution is also expected to ramp up in 2025.
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