Quad Continues Stock Repurchases in Fourth Quarter 2023

Rhea-AI Summary

Quad/Graphics, Inc. (QUAD) announced the purchase of 492,396 shares of its stock in Q4 2023, totaling 2,852,501 shares for the year at an average price of $4.40 per share. The Board also authorized a $100 million share repurchase program with $77.5 million remaining as of December 31, 2023.

Insights

Financial Analyst

The strategic move by Quad/Graphics, Inc. to repurchase a substantial number of shares indicates a potentially bullish sentiment from the company's management regarding its future prospects. Share repurchases often signal a belief that the stock is undervalued and management is capitalizing on this by returning value to shareholders. The weighted average price of $4.40 per share for the repurchases in 2023 suggests that the company has been able to buy back its stock at a relatively stable price, which could be beneficial if the market price appreciates.

From a financial perspective, the repurchase program can be seen as a method to optimize the company's capital structure. By reducing the number of shares outstanding, the earnings per share (EPS) metric may increase, potentially making the stock more attractive to investors. However, it is crucial to consider the opportunity cost of the repurchase program. The $77.5 million remaining under the program could alternatively be used for investments in growth initiatives, which might offer a higher return in the long-term.

Market Research Analyst

Examining the industry context, the print and marketing solutions sector has been facing digital disruption, which has led to a shift in how companies allocate their capital. Quad/Graphics' repurchase activity may reflect a strategic decision to enhance shareholder value in an industry where organic growth can be challenging. The repurchase program also sends a market signal that could positively influence investor sentiment and stock performance.

It is important to analyze the stock repurchase within the broader market trends. If Quad/Graphics' competitors are also engaging in buybacks, it may indicate a sector-wide trend of returning capital to shareholders rather than investing in expansion. This could have implications for the sector's long-term growth trajectory. The company's actions should be evaluated against its competitors' strategies and the overall health of the industry.

Economist

From an economic standpoint, share repurchases can be reflective of broader economic conditions. In a low-interest-rate environment, companies may find it more financially prudent to return capital to shareholders through buybacks rather than holding excess cash or making low-yield investments. The decision by Quad/Graphics to continue its repurchase program could be influenced by such macroeconomic factors.

Additionally, the repurchase program's impact on the stock market could be multifaceted. While it may contribute to a short-term increase in the company's stock price, the long-term effects depend on the company's ability to generate sustainable profits and growth. The remaining availability of $77.5 million suggests that the company maintains a reserve for further capital return initiatives, which could have a stabilizing effect on the stock's performance, especially during market volatility.

SUSSEX, Wis.--(BUSINESS WIRE)-- Quad/Graphics, Inc. (NYSE: QUAD), a global marketing experience company, today announced that it purchased 492,396 shares of its own stock via open market transactions during the fourth quarter of 2023, bringing the full-year 2023 total of share repurchases to 2,852,501 shares at a weighted average price per share of $4.40.

On July 30, 2018, Quad’s Board of Directors authorized a $100 million share repurchase program of the Company’s outstanding class A common stock to seek opportunities to support Quad's commitment to return capital to shareholders. The remaining availability under the program as of December 31, 2023, was approximately $77.5 million.

About Quad

Quad (NYSE: QUAD) is a $3 billion global marketing experience company that gives brands a more streamlined, impactful, flexible and frictionless way to reach their target audience via a uniquely integrated marketing platform. Quad connects every facet of the marketing journey efficiently and at scale through its innovative, data-driven offerings – from strategy and consulting to data and analytics, technology solutions, media services, creative and content solutions, and managed services. Quad provides a better marketing experience for its clients, so they can focus on delivering the best customer experience.

Quad employs approximately 15,000 people in 14 countries worldwide and serves more than 2,900 clients across the retail, publishing, consumer packaged goods, financial services, healthcare, insurance and direct-to-consumer industries. Quad is ranked as a leader in multiple industries including largest agency companies (Ad Age, #14); largest commercial printers (Printing Impressions, #2); and largest Milwaukee-area manufacturers (Milwaukee Business Journal, #1).

For more information about Quad, including its commitment to ongoing innovation, culture and social purpose, visit quad.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240126633530/en/

Investor Relations Contact

Don Pontes

Executive Director of Investor Relations

916-532-7074

dwpontes@quad.com

Source: Quad/Graphics, Inc.

FAQ

How many shares did Quad/Graphics, Inc. purchase in Q4 2023?

Quad/Graphics, Inc. purchased 492,396 shares of its stock in Q4 2023.

What was the total number of shares repurchased by Quad/Graphics, Inc. in 2023?

Quad/Graphics, Inc. repurchased a total of 2,852,501 shares in 2023.

At what average price per share did Quad/Graphics, Inc. repurchase its stock in 2023?

Quad/Graphics, Inc. repurchased shares at a weighted average price of $4.40 per share in 2023.

What was the total authorized amount for Quad/Graphics, Inc.'s share repurchase program?

Quad/Graphics, Inc. authorized a $100 million share repurchase program.

How much remaining availability was there under Quad/Graphics, Inc.'s share repurchase program as of December 31, 2023?

As of December 31, 2023, there was approximately $77.5 million remaining under Quad/Graphics, Inc.'s share repurchase program.