Silvercrest Asset Management Group Inc. Announces $12 Million Common Stock Repurchase Program

Rhea-AI Summary

Silvercrest Asset Management Group Inc. (NASDAQ: SAMG) has announced a $12 million common stock repurchase program authorized by its Board of Directors. The program allows the company to buy back up to $12 million worth of its Class A common stock over the next 12 months, subject to market conditions. Repurchases may be made in the open market at prices deemed appropriate by the company. The program is flexible, with no obligation to repurchase any specific amount or number of shares, and can be suspended or discontinued at any time. This move demonstrates Silvercrest's confidence in its financial position and commitment to enhancing shareholder value.

Positive

• Authorization of a $12 million stock repurchase program
• Potential to enhance shareholder value through stock buybacks
• Flexibility in program implementation, allowing for market-responsive decisions

Negative

• Potential reduction in cash reserves available for other investments or operations

Insights

Financial Analyst

Silvercrest's $12 million stock repurchase program signals confidence in the company's financial health and future prospects. This move is typically viewed positively by investors for several reasons:

• It can boost earnings per share by reducing the number of outstanding shares
• It may indicate management believes the stock is undervalued
• It can provide support for the stock price in the market

However, the $12 million size is relatively modest, suggesting a cautious approach. The 12-month timeframe and non-obligatory nature provide flexibility, allowing the company to adapt to changing market conditions. Investors should monitor the execution of this program and its impact on Silvercrest's capital allocation strategy and overall financial performance.

Market Research Analyst

This repurchase program aligns with broader market trends where companies are increasingly using buybacks to return value to shareholders. For Silvercrest, an asset management firm, this move could be interpreted as a strategic response to current market dynamics:

• Market volatility: Buybacks can provide stability during uncertain times
• Interest rates: With potential rate cuts, companies may prefer buybacks over holding cash
• Industry competition: Enhancing shareholder value to remain attractive in a competitive asset management landscape

Investors should consider how this program compares to industry peers and its potential impact on Silvercrest's market position and investor perception. The modest size suggests a balanced approach to capital management, which could be viewed favorably in the current economic climate.

NEW YORK, Aug. 16, 2024 (GLOBE NEWSWIRE) -- Silvercrest Asset Management Group Inc. (NASDAQ: SAMG) (the “Company” or “Silvercrest”) today announced that the Company's Board of Directors authorized a common stock repurchase program. Under the program, the Company may purchase up to $12.0 million of its Class A common stock over the next 12 months, as market conditions warrant. The shares may be repurchased in the open market, at prices that the Company deems appropriate and subject to market conditions, applicable law and other factors deemed relevant in the Company’s sole discretion. The stock repurchase program does not obligate the Company to repurchase any dollar amount or number of shares of Class A common stock, and the program may be suspended or discontinued at any time.

Forward-Looking Statements and Other Disclosures

This release contains, and from time to time our management may make, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Forward-looking statements in this release include, but are not limited to, statements that relate to Silvercrest’s ability to execute the share repurchase program, in whole or in part, and expected timing and amount of repurchases. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks, uncertainties and assumptions. These statements are only predictions based on our current expectations and projections about future events. Important factors that could cause actual results, level of activity, performance or achievements to differ materially from those indicated by such forward-looking statements include, but are not limited to: incurrence of net losses; fluctuations in quarterly and annual results; adverse economic or market conditions; our expectations with respect to future levels of assets under management, inflows and outflows; our ability to retain clients; our ability to maintain our fee structure; our particular choices with regard to investment strategies employed; our ability to hire and retain qualified investment professionals; the cost of complying with current and future regulation coupled with the cost of defending ourselves from related investigations or litigation; failure of our operational safeguards against breaches in data security, privacy, conflicts of interest or employee misconduct; our expected tax rate; and our expectations with respect to deferred tax assets, adverse economic or market conditions, including the continued adverse effects of the coronavirus pandemic; incurrence of net losses; adverse effects of management focusing on implementation of a growth strategy; failure to develop and maintain the Silvercrest brand; and other factors disclosed under “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2023, which is accessible on the U.S. Securities and Exchange Commission’s website at www.sec.gov. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

About Silvercrest
Silvercrest was founded in April 2002 as an independent, employee-owned registered investment adviser. With offices in New York, Boston, Virginia, New Jersey, California and Wisconsin, Silvercrest provides traditional and alternative investment advisory and family office services to wealthy families and select institutional investors. As of June 30, 2024, the firm reported assets under management of $33.4 billion.

Contact: Richard Hough
212-649-0601
rhough@silvercrestgroup.com

FAQ

What is the size of Silvercrest Asset Management's (SAMG) stock repurchase program?

Silvercrest Asset Management (SAMG) has authorized a $12 million common stock repurchase program.

How long will Silvercrest's (SAMG) stock repurchase program last?

The stock repurchase program is set to last for 12 months from the announcement date of August 16, 2024.

Is Silvercrest (SAMG) obligated to repurchase a specific number of shares?

No, Silvercrest (SAMG) is not obligated to repurchase any specific dollar amount or number of shares. The program can be suspended or discontinued at any time.

Where will Silvercrest (SAMG) repurchase its shares under this program?

Silvercrest (SAMG) may repurchase shares in the open market at prices the company deems appropriate, subject to market conditions and other factors.