U.S. Global Investors Announces Share Repurchases Increased Year-over-Year in October

Rhea-AI Summary

U.S. Global Investors (GROW) announced significant share repurchases in October 2022, buying back 16,426 shares for approximately $47,000, marking a 744% increase from the previous year. This buyback is part of an increased program limit from $2.75 million to $5 million per year, aiming to capitalize on perceived undervaluation. Additionally, the company confirmed a monthly dividend of $0.0075 per share, reflecting a 3.10% annual yield based on the October 31 closing price of $2.90. Future dividends will depend on financial performance and board discretion.

Positive

• Share repurchases increased significantly by 744% YoY, reflecting strong shareholder confidence.
• The buyback program limit was raised from $2.75 million to $5 million per year, indicating a proactive approach to enhancing shareholder value.
• Monthly dividend of $0.0075 represents a 3.10% annual yield, providing consistent returns to shareholders.

Negative

• GROW's stock fell 24% in September 2022, highlighting market volatility and potential investor concerns.

San Antonio, TX, Nov. 01, 2022 (GLOBE NEWSWIRE) -- U.S. Global Investors, Inc. (NASDAQ: GROW) (the “Company”), a registered investment advisory firm with longstanding experience in global markets and specialized sectors, is pleased to provide an update on its share repurchase and dividend programs.

Share Repurchases up from Last Year

In October 2022, the Company bought back 16,426 shares at an approximate net cost of $47,000. Compared to the same month last year, this represents a 744% increase in the number of shares and 310% increase in the net cost.

“The Company strategically repurchases GROW stock on down days using an algorithm, and the stock was down more days in September than in October. In fact, GROW lost 24% in September as global markets fell due to rising interest rates, but then it gained about 1% in October. This impacted the dollar amount of GROW shares we could buy per day,” explains Frank Holmes, the Company CEO and Chief Investment Officer. “Nevertheless, the number of shares the Company repurchased in October far exceeded last October’s buybacks, and that’s due to our decision in February 2022 to increase the limit to our buyback program from $2.75 million per year to $5 million per year. We believe that the Company’s stock is undervalued, making the buybacks an attractive opportunity on down days in anticipation of a potential rebound.”

Scheduled Dividends in November

A monthly dividend of $0.0075 per share was authorized in September 2022 to continue through December 2022. The upcoming dividend record date is November 14, and the payment date is November 28.

At the October 31, 2022, closing price of $2.90, the $0.0075 monthly dividend equals a 3.10% yield on an annualized basis.

The continuation of future cash dividends will be determined by the Board of Directors, at its sole discretion, after review of the company's financial performance and other factors, and is dependent on earnings, operations, capital requirements, general financial condition of the company and general business conditions.

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About U.S. Global Investors, Inc.

The story of U.S. Global Investors goes back more than 50 years when it began as an investment club. Today, U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on niche markets around the world. Headquartered in San Antonio, Texas, the Company provides money management and other services to U.S. Global Investors Funds and U.S. Global ETFs.

FAQ

What was the amount of shares U.S. Global Investors repurchased in October 2022?

In October 2022, U.S. Global Investors repurchased 16,426 shares.

What is the purpose of U.S. Global Investors' share repurchase program?

The share repurchase program aims to take advantage of perceived undervaluation and enhance shareholder value.

What is the current dividend yield for GROW stock?

The current dividend yield for GROW stock, based on a monthly dividend of $0.0075 and a closing price of $2.90 as of October 31, is 3.10%.

When is the next dividend payment date for GROW?

The next dividend payment date for GROW is November 28, 2022.