Maximus Board Authorizes Expansion to Purchase Program of Maximus Common Stock
Maximus (NYSE:MMS), a global leader in government services, announced that its Board of Directors has authorized an expansion of the company's stock repurchase program, adding up to $200 million. This new authorization includes the remaining $6 million from the existing program. Maximus plans to buy back shares based on market conditions and corporate needs. The company has already repurchased 538,978 shares for approximately $44.5 million since March 31, 2024. CEO Bruce Caswell emphasized that this move aligns with the company's disciplined capital allocation strategy aimed at benefiting shareholders.
- Board authorizes $200 million expansion for the stock repurchase program.
- Includes $6 million remaining from the existing program.
- Since March 31, 2024, purchased 538,978 shares worth $44.5 million.
- CEO states the program aligns with disciplined capital allocation priorities.
- No specific guidance on the timing of stock purchases, depending on market conditions and corporate needs.
Insights
The expansion of the stock purchase program by Maximus to
However, it's important to consider that such buybacks can also signal that the company does not have better investment opportunities for the use of this capital, such as growth projects or acquisitions. Investors should also note that the amount and timing of these purchases will depend on market conditions and corporate needs, adding an element of uncertainty.
Overall, the impact of this move on the stock's performance will hinge on how effectively the company executes the buyback program and broader market conditions.
From a market perspective, the expansion of Maximus’s stock purchase program can be seen as a strategic move to stabilize or potentially increase the stock price. Stock buybacks often indicate management’s belief in the intrinsic value of the company, which can be a reassuring signal to the market, especially in times of volatility.
Moreover, this action aligns with the company’s stated capital allocation priorities, showing a disciplined and opportunistic approach. However, the success of this strategy will depend heavily on market conditions. For instance, if market prices are high, the buyback might not be as financially beneficial compared to if the market prices are low.
Investors should watch for any changes in share price and market reactions to better understand the full impact and effectiveness of this buyback program.
TYSONS, Va.--(BUSINESS WIRE)--
Maximus (NYSE:MMS), a leading employer and provider of government services worldwide, announced today that its Board of Directors has authorized an expansion to the purchase program for Maximus common stock of up to an aggregate of
Maximus intends to purchase shares opportunistically at prevailing market prices in the open market, or in privately negotiated transactions, with the amount and timing of purchases depending on market conditions, corporate needs, and other factors.
“Expansion of this program is consistent with our opportunistic approach to purchasing our common stock,” commented Bruce Caswell, President and Chief Executive Officer of Maximus. “Our capital allocation priorities are unchanged and continue to be based on a disciplined approach that we believe is most beneficial to our shareholders.”
Since March 31, 2024, Maximus has purchased 538,978 shares for approximately
About Maximus
As a leading strategic partner to governments across the globe, Maximus helps improve the delivery of public services amid complex technology, health, economic, environmental, and social challenges. With a deep understanding of program service delivery, acute insights that achieve operational excellence, and an extensive awareness of the needs of the people being served, our employees advance the critical missions of our partners. Maximus delivers innovative business process management, impactful consulting services, and technology solutions that provide improved outcomes for the public and higher levels of productivity and efficiency of government-sponsored programs. For more information, visit maximus.com.
Forward-Looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995, including statements regarding the Company’s stock purchase program and capital allocation priorities. Actual results may differ materially from those explicit or implicit in the forward-looking statements. Important factors that could cause actual results to differ materially include, but are not limited to: the fact that common stock purchases may not be conducted in the timeframe or in the manner the Company expects, or at all, the Company’s capital allocation priorities may shift and the other risk factors disclosed in the Company’s Annual Report on Form 10-K for the year ended September 30, 2023, as updated by the Company’s other filings with the Securities and Exchange Commission, copies of which are available free of charge on the Company’s website at investor.maximus.com. The Company assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240612928037/en/
Investor Relations
James Francis
Jessica Batt
IR@maximus.com
Media & Public Relations
Eileen Cassidy Rivera
media@maximus.com
Source: Maximus
FAQ
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