Progyny, Inc. Announces Additional Share Repurchase Program

Rhea-AI Summary

Progyny (Nasdaq: PGNY) announced a new share repurchase program to buy back up to $100 million of its common stock. This follows a previous program announced on February 29, 2024. The repurchase will be funded via existing cash balances and carried out through open market transactions, which may include Rule 10b5-1 plans under the Securities Exchange Act of 1934. The program's execution will depend on various factors such as stock price and market conditions. The company has the discretion to suspend or discontinue the program at any time, with no guaranteed amount of shares to be repurchased or specific prices disclosed.

Positive

• Up to $100 million allocated for share repurchase.
• Repurchase program to be funded through available cash balances.
• Flexibility in execution, with the option to use Rule 10b5-1 plans.

Negative

• No guarantee on the number of shares to be repurchased.
• Uncertainty on the prices at which shares will be bought.
• Program may be suspended or discontinued at any time.

Insights

Financial Analyst

Progyny's announcement of an additional $100 million share repurchase program signals a positive gesture towards shareholders, reflecting confidence in the company's financial stability and future prospects. Share repurchase programs often aim to increase shareholder value by reducing the number of outstanding shares, thereby potentially increasing the earnings per share (EPS). This program, funded through available cash balances, underscores the company's strong liquidity position.

However, risks are inherent. The uncertain nature of the repurchase timing and volume can lead to variable impacts on the stock price. Additionally, the funds used for repurchase might have been deployed in other growth or debt reduction opportunities. Investors should weigh these factors carefully and consider both short-term potential stock price support and long-term strategic flexibility.

The decision to use open market repurchases and Rule 10b5-1 plans aligns with standard practice, providing flexibility and compliance with regulatory requirements. It's essential to monitor subsequent disclosures to gauge the actual execution of the repurchases.

Market Research Analyst

The fertility and family-building sector is experiencing significant growth, driven by increased awareness and demand for comprehensive reproductive health services. Progyny's share repurchase program can be seen as a strategic move to bolster shareholder confidence amidst this expanding market landscape. By buying back shares, the company may be signaling an undervaluation of its stock, which could attract additional investor interest.

Given the competitive nature of the industry, this repurchase plan might also indicate that Progyny is prioritizing shareholder returns over aggressive expansion or new investments at this time. Retail investors should observe how the market reacts and whether this move influences the broader sector trends. The program's flexibility to adapt to market conditions will be important in determining its success.

NEW YORK, May 22, 2024 (GLOBE NEWSWIRE) -- Progyny, Inc. (Nasdaq: PGNY), a transformative fertility, family building, and women’s health benefits solution, announced today that its Board of Directors has approved a share repurchase program to repurchase up to $100 million of its common stock. This follows the program that was previously announced on February 29, 2024. The program will be funded through available cash balances.

Shares may be repurchased through open market repurchases, including through plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, depending on stock price, market conditions and other factors deemed relevant in the Company’s sole discretion. The program may be suspended or discontinued at any time. There can be no assurances as to how many shares the Company will repurchase, if any, or at what prices any purchases will be made.

About Progyny

Progyny (Nasdaq: PGNY) is a transformative fertility, family building and women’s health benefits solution, trusted by the nation’s leading employers, health plans and benefit purchasers. We envision a world where everyone can realize their dreams of family and ideal health. Our outcomes prove that comprehensive, inclusive and intentionally designed solutions simultaneously benefit employers, patients and physicians.

Our benefits solution empowers patients with concierge support, coaching, education, and digital tools; provides access to a premier network of fertility and women's health specialists who use the latest science and technologies; drives optimal clinical outcomes; and reduces healthcare costs.

Headquartered in New York City, Progyny has been recognized for its leadership and growth by CNBC Disruptor 50, Modern Healthcare’s Best Places to Work in Healthcare, Forbes’ Best Employers, Financial Times, Inc. 5000, Inc. Power Partners, and Crain’s Fast 50 for NYC. For more information, visit www.progyny.com.

For Further Information, Please Contact:

Investors:
James Hart
investors@progyny.com

Media:
Selena Yang
media@progyny.com

FAQ

What is the new share repurchase program announced by Progyny in May 2024?

Progyny announced a share repurchase program to buy back up to $100 million of its common stock.

How will Progyny fund the new share repurchase program in 2024?

The repurchase program will be funded through Progyny's available cash balances.

When was Progyny's previous share repurchase program announced?

Progyny's previous share repurchase program was announced on February 29, 2024.

Under what conditions will Progyny repurchase shares?

The company will repurchase shares based on stock price, market conditions, and other relevant factors.

Can Progyny suspend or discontinue the share repurchase program?

Yes, Progyny can suspend or discontinue the share repurchase program at any time.

Will Progyny disclose the number of shares to be repurchased or the prices?

There is no assurance on the number of shares to be repurchased or the specific prices.