Madison Square Garden Entertainment Corp. Repurchases $25 Million of MSGE Class A Common Stock

Rhea-AI Summary

Madison Square Garden Entertainment (NYSE: MSGE) has repurchased 681,593 shares of Class A common stock at an average price of $36.68 per share, totaling approximately $25 million from November 20 through December 2, 2024. The repurchase was funded with cash on hand. Since its spinoff from Sphere Entertainment in April 2023, MSGE has repurchased over 5 million shares for approximately $165 million. The company has $85 million remaining under its current share repurchase authorization.

Positive

• Completed $25 million share repurchase program at $36.68 per share
• Strong cash position enabling buybacks with cash on hand
• Significant buyback capacity remaining with $85 million authorization
• Demonstrated commitment to shareholder returns with $165 million in total buybacks since April 2023

Negative

• None.

Insights

Financial Analyst

The $25 million stock buyback represents a strategic move by MSG Entertainment to capitalize on what management views as an undervalued stock position. The average purchase price of $36.68 per share shows management's confidence in the company's intrinsic value being higher than current market prices. Since its spinoff, MSGE has now repurchased $165 million worth of shares, demonstrating a consistent commitment to returning capital to shareholders.

With $85 million still remaining in the buyback authorization, this represents potential continued support for the stock price. The use of cash on hand for these repurchases indicates healthy liquidity, though investors should monitor cash reserves and operational needs. The buyback reduces the float by 681,593 shares, which could potentially increase earnings per share and create additional shareholder value through increased ownership stakes.

NEW YORK, Dec. 3, 2024 /PRNewswire/ -- Madison Square Garden Entertainment Corp. (NYSE: MSGE) (the "Company" or "MSG Entertainment") today announced that the Company repurchased 681,593 shares of MSGE Class A common stock at an average price of $36.68 per share for an aggregate purchase price of approximately $25 million from November 20, 2024 through December 2, 2024. The share repurchases were funded using cash on hand. 

The Company believes these share repurchases are prudent in light of the trading price of its Class A common stock relative to the Company's long-term growth potential. Since the Company was spun off from Sphere Entertainment Co. in April 2023, the Company has repurchased 5,046,960 shares of MSGE Class A common stock for an aggregate purchase price of approximately $165 million. The Company has approximately $85 million remaining under its existing share repurchase authorization. 

About Madison Square Garden Entertainment Corp.
Madison Square Garden Entertainment Corp. (MSG Entertainment) is a leader in live entertainment, delivering unforgettable experiences while forging deep connections with diverse and passionate audiences. The Company's portfolio includes a collection of world-renowned venues – New York's Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall, and Beacon Theatre; and The Chicago Theatre – that showcase a broad array of sporting events, concerts, family shows, and special events for millions of guests annually. In addition, the Company features the original production, the Christmas Spectacular Starring the Radio City Rockettes, which has been a holiday tradition for more than 90 years. More information is available at www.msgentertainment.com.

Forward-Looking Statements
This press release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results, developments or events may differ materially from those in the forward-looking statements as a result of various factors, including financial community perceptions of the Company and its business, operations, financial condition and the industries in which it operates and the factors described in the Company's filings with the Securities and Exchange Commission, including the sections titled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained therein. The Company disclaims any obligation to update any forward-looking statements contained herein.

Contacts

Ari Danes, CFA Senior Vice President, Investor Relations, Financial Communications & Treasury Madison Square Garden Entertainment Corp. (212) 465-6072	Justin Blaber Vice President, Financial Communications Madison Square Garden Entertainment Corp. (212) 465-6109
Grace Kaminer Vice President, Investor Relations & Treasury Madison Square Garden Entertainment Corp. (212) 631-5076	Sarah Rothschild Senior Director, Investor Relations & Treasury Madison Square Garden Entertainment Corp. (212) 631-5345

 

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SOURCE Madison Square Garden Entertainment Corp.

FAQ

How many shares did MSGE repurchase in December 2024?

MSGE repurchased 681,593 shares of Class A common stock from November 20 through December 2, 2024.

What was the average price per share for MSGE's recent stock repurchase?

The average price per share for the repurchase was $36.68.

How much has MSGE spent on share repurchases since its spinoff in April 2023?

MSGE has spent approximately $165 million on share repurchases since its spinoff in April 2023, buying back 5,046,960 shares.

How much remains in MSGE's share repurchase authorization?

MSGE has approximately $85 million remaining under its existing share repurchase authorization.