QUINCY, Mass. – CFSB Bancorp, Inc. (NASDAQ:CFSB), the parent company of Colonial Federal Savings Bank, has announced the initiation of a stock repurchase program. The program authorizes the buyback of up to 152,287 shares, representing approximately 5% of the company's outstanding common stock, excluding shares held by 15 Beach, MHC.
The repurchase plan is set to begin following the public release of CFSB Bancorp's financial results for the quarter ending March 31, 2024. The company will conduct the buybacks through open market or private transactions, and may also utilize a trading plan in line with Rule 10b5-1 of the Securities and Exchange Commission (SEC).
While the company has the discretion to repurchase shares, the actual timing and volume of repurchases will be influenced by various factors. These include stock availability, market conditions, stock trading price, potential alternative capital deployments, and the company's financial performance. Any open market purchases will comply with SEC Rule 10b-18 and other relevant legal requirements.
CFSB Bancorp has clarified that there is no obligation to repurchase any specific number or to complete the program within a set timeframe.
Colonial Federal Savings Bank, founded in 1889, operates out of Norfolk County, Massachusetts with three full-service and one limited-service banking offices. The stock repurchase program marks a significant step for CFSB Bancorp since its transition to a mutual holding company structure and subsequent stock offering in January 2022.
The information disclosed in this announcement is based on a press release statement from CFSB Bancorp, Inc. It is important to note that forward-looking statements in the press release are not guarantees of future performance and are subject to risks and uncertainties.
These could cause actual results to differ materially from those anticipated. The company has advised against placing undue reliance on these forward-looking statements and will not update them to reflect events or circumstances post-release.
InvestingPro Insights
As CFSB Bancorp, Inc. (NASDAQ:CFSB) embarks on its stock repurchase program, a closer look at the company's financial metrics reveals a mixed picture. With a market capitalization of $45.74 million, CFSB is trading at a high earnings multiple, reflected in its P/E ratio of 120.59 for the last twelve months as of Q2 2024. This indicates that the stock may be priced optimistically relative to its earnings.
Despite being profitable over the past year, CFSB's revenue has been on the decline, with a -12.14% change in the last twelve months as of Q2 2024. This contraction is even more pronounced when looking at the quarterly revenue growth, which saw a -23.18% dip in Q1 2024.
This could signal potential challenges in the company's operations or market conditions that investors might want to monitor closely.
On the upside, the company's price to book ratio stands at 0.61, suggesting that the stock could be undervalued in terms of its net asset value. This could present an opportunity for investors seeking assets trading below their intrinsic value. Additionally, CFSB Bancorp does not pay a dividend, which may be a relevant factor for income-focused investors to consider.
For those interested in a deeper analysis, there are additional InvestingPro Tips available that could provide further insights into CFSB’s financial health and future prospects. And for a limited time, you can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, offering even more valuable investment tips and data.
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