MACON, Ga. - Blue Bird (NASDAQ:BLBD) Corporation (NASDAQ:BLBD), known for its electric and low-emission school buses, has announced a new stock repurchase program. The company's Board of Directors has authorized a buyback of up to $60 million of its outstanding common stock over the next two years.
The repurchases may occur through various methods, such as open market transactions, private deals, block trades, or under plans that comply with SEC Rule 10b5-1. Blue Bird’s management retains the flexibility to determine the timing, volume, and pricing of the buybacks.
Blue Bird's CEO, Phil Horlock, expressed that the stock repurchase initiative is a testament to the company's robust financial health and its commitment to enhancing shareholder value. He highlighted the company's strong free cash flow generation as a key enabler for the repurchase program.
The program does not bind Blue Bird to acquire a predetermined amount of stock and may be adjusted or discontinued at the company's discretion. The funding for these repurchases is expected to come from a mix of Blue Bird's existing cash reserves, future cash flows, or potential debt.
This move comes as part of Blue Bird's broader strategy, which includes a focus on producing environmentally friendly school buses. The company boasts a significant market presence, with over 20,000 propane, natural gas, and electric buses currently in service. Blue Bird has been a player in the school bus industry since 1927, emphasizing safety, reliability, and durability in its vehicle designs.
The information in this article is based on a press release statement from Blue Bird Corporation.
InvestingPro Insights
As Blue Bird Corporation (NASDAQ:BLBD) embarks on its stock repurchase program, reflecting confidence in its financial stability and commitment to shareholder value, InvestingPro data and tips provide a deeper insight into the company's performance and market position. With a market capitalization of $958.87 million and a significant revenue growth of 41.49% over the last twelve months as of Q1 2023, Blue Bird showcases robust financial health that underpins its repurchasing capacity.
InvestingPro Tips suggest that Blue Bird's net income is expected to grow this year, and three analysts have revised their earnings upwards for the upcoming period, signaling potential optimism in the company's future profitability. Additionally, Blue Bird is trading at a low P/E ratio relative to near-term earnings growth, offering an attractive valuation point for investors considering the stock amidst its buyback announcement.
The company's strong performance is further highlighted by a high return over the last year, with a 91.27% price total return, and a remarkable three-month price total return of 60.58%. Blue Bird's strategic focus on environmentally friendly school buses may continue to drive its market presence and financial success.
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