U.S. Global Investors Increases Share Buyback Program
On February 25, 2022, U.S. Global Investors announced an increase of 82% in its annual share buyback program limit, raising it from $2.75 million to $5 million. This strategic move is aimed at reinforcing the Company’s financial strategy and reflects confidence from the Board of Directors, citing the company’s undervaluation compared to peers. The decision follows two previous increases in the monthly dividend, now 50% higher than last year. The Company remains debt-free, allowing for further capital allocation towards new product launches.
- Increased annual share buyback limit from $2.75 million to $5 million, enhancing shareholder value.
- Monthly dividend raised by 50% from a year ago, indicating strong capital management.
- Company remains debt-free, allowing flexibility for future investments and product launches.
- None.
San Antonio, TX, Feb. 25, 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 announce that it has increased the limit to its annual share buyback program
As before, the Company strategically repurchases stock on down days using an algorithm. The decision to increase the amount is to complement two increases to the Company’s monthly dividend, one in February 2021 and another in October 2021. The dividend payout is up
“The increase to the buyback program reflects the Board of Directors’ continued confidence in the Company’s financial strategy. The directors believe the Company is undervalued relative to other asset managers based on a number of fundamental factors, including return on assets and return on equity. The Board believes it is prudent to have increased dividends and stock buybacks while reserving some capital to be able to launch new smart-beta products such as the U.S. Global Sea to Sky Cargo ETF (SEA). In addition, the Company is debt free,” says Frank Holmes, Company CEO and Chief Investment Officer.
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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.
Forward-Looking Statements and Disclosure
Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a statutory and summary prospectus by visiting www.usglobaletfs.com. Read it carefully before investing.
Smart beta refers to a type of exchange-traded fund (ETF) that uses a rules-based system for selecting investments to be included in the fund portfolio. The price-to-sales (P/S) ratio is a valuation ratio that compares a company’s stock price to its revenues. Return on assets (ROA) compares the value of a business’s assets with the profits it produces over a set period of time. Return on equity (ROE) is a measure of financial performance calculated by dividing net income by shareholders' equity. The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share price relative to its earnings per share (EPS).
Distributed by Quasar Distributors, LLC. U.S. Global Investors is the investment adviser to SEA.
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FAQ
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