U.S. Global Investors Ramps Up Share Repurchases Amid Promising Domestic Airline Earnings; Continues Monthly Dividends

Rhea-AI Summary

U.S. Global Investors, Inc. (NASDAQ: GROW) announces repurchase of 61,989 shares in July 2023, at a net cost of over $196,000, representing a significant increase from previous months. The Board approves continuation of monthly dividends. Domestic airlines, including American, Delta, and United, report record revenues for the second quarter.

Positive

• U.S. Global Investors repurchased 61,989 shares in July 2023, at a net cost of over $196,000, representing a significant increase from previous months.
• The Board approved the continuation of the $0.0075 per share per month dividend.
• American Airlines and Delta Air Lines reported record revenues of $14.1 billion and $15.6 billion, respectively, in the second quarter.
• United Airlines reported record adjusted EPS of $5.03 during the June quarter and raised its 2023 guidance to between $11 and $12 per share.

Negative

• None.

San Antonio, TX, Aug. 11, 2023 (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, today is pleased to announce that it repurchased 61,989 of its own shares in July 2023, at a net cost of over $196,000. This represents an increase of approximately 162% from the number of shares purchased the previous month and a significant 951% increase from the same month a year earlier.

The Board of Directors (the “Board”) modified the Company’s buyback program in December 2022, making it possible for the Company to buy back shares of GROW stock when the price is flat or down from the previous trading day.

Continuation of Monthly Dividends

The Board approved payment of the $0.0075 per share per month dividend beginning in July 2023 and continuing through September 2023. The record dates are August 14 and September 11, and the payment dates will be August 28 and September 25.

The continuation of future cash dividends will be determined by the Board, 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.

Domestic Airlines’ Record-Setting Quarter

On a final note, the Company is excited to share details of the domestic airline industry’s record-setting quarter ended June 30. American Airlines Group Inc. (“American”) and Delta Air Lines Inc. (“Delta”) both reported record revenues during the second quarter—American with $14.1 billion and Delta with $15.6 billion—on strong summer travel demand. American raised its full-year 2023 adjusted earnings per share (EPS) guidance to between $3.00 and $3.75, while Delta says it will be using its cash flow to pay down a projected $4 billion in debt by year-end.

United Airlines Holdings Inc. (“United”) reported record adjusted EPS of $5.03 during the June quarter and raised its 2023 guidance to between $11 and $12 per share, up from previous guidance of between $10 and $12. The carrier said that it flew 2,400 scheduled flights per day on average in the second quarter, the most in company history.

“American, Delta and United represent three of the largest holdings in the U.S. Global Jets ETF (NYSE: JETS), so we believe the record financial results are highly positive for what remains our largest fund, with approximately $1.8 billion in assets under management (AUM) as of July 31, 2023,” says Frank Holmes, the Company’s CEO and Chief Investment Officer. “Despite higher rates, fears of a recession appear to be receding as the economy continues to defy expectations and consumers continue to spend. Against this optimistic backdrop, airlines are adding new routes and expanding service into additional countries, with United recently announcing the largest-ever network expansion from the U.S. to the South Pacific. For investors who may be seeking a way to gain exposure to this travel boom, I believe JETS to be an excellent choice.”

Click here to see the top holdings in JETS. 

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 investment advisory services to U.S. Global Investors Funds and U.S. Global ETFs.

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Please carefully consider a fund’s investment objectives, risks, charges, and expenses. For this and other important information, obtain a statutory and summary prospectus for JETS by clicking here. Read it carefully before investing.

Investing involves risk, including the possible loss of principal. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the funds. Brokerage commissions will reduce returns. Because the funds concentrate their investments in specific industries, the funds may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries. The funds are non-diversified, meaning they may concentrate more of their assets in a smaller number of issuers than diversified funds. The funds invest in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are greater for investments in emerging markets.

The funds may invest in the securities of smaller-capitalization companies, which may be more volatile than funds that invest in larger, more established companies. The performance of the funds may diverge from that of the index. Because the funds may employ a representative sampling strategy and may also invest in securities that are not included in the index, the funds may experience tracking error to a greater extent than funds that seek to replicate an index. The funds are not actively managed and may be affected by a general decline in market segments related to the index.

Airline Companies may be adversely affected by a downturn in economic conditions that can result in decreased demand for air travel and may also be significantly affected by changes in fuel prices, labor relations and insurance costs.

Earnings Per Share (EPS) is calculated as a company’s profit divided by the outstanding shares of its common stock.

Fund holdings and allocations are subject to change at any time. Click to view fund holdings for JETS.

Distributed by Quasar Distributors, LLC. U.S. Global Investors is the investment adviser to JETS.

FAQ

What did U.S. Global Investors announce?

U.S. Global Investors announced the repurchase of 61,989 shares in July 2023.

What was the net cost of the share repurchase?

The net cost of the share repurchase was over $196,000.

What is the increase in shares purchased compared to the previous month?

The number of shares purchased in July 2023 increased by approximately 162% compared to the previous month.

What is the increase in shares purchased compared to the same month a year earlier?

The number of shares purchased in July 2023 increased by a significant 951% compared to the same month a year earlier.

What did the Board approve regarding dividends?

The Board approved the continuation of the $0.0075 per share per month dividend.

Which domestic airlines reported record revenues for the second quarter?

American Airlines and Delta Air Lines reported record revenues of $14.1 billion and $15.6 billion, respectively, in the second quarter.

What was United Airlines' adjusted EPS during the June quarter?

United Airlines reported record adjusted EPS of $5.03 during the June quarter.

What is United Airlines' updated guidance for 2023 EPS?

United Airlines raised its 2023 guidance to between $11 and $12 per share, up from previous guidance of between $10 and $12.

What is the largest holding in the U.S. Global Jets ETF?

American, Delta, and United are three of the largest holdings in the U.S. Global Jets ETF.

What is the CEO's recommendation for investors seeking exposure to the travel boom?

The CEO recommends the U.S. Global Jets ETF (JETS) as an excellent choice for investors seeking exposure to the travel boom.