Sezzle Authorizes New $15 Million Stock Repurchase Program
Sezzle (NASDAQ: SEZL) has announced a new $15 million stock repurchase program, following the completion of its previous $5 million plan. The Board's decision reflects confidence in the company's momentum and commitment to enhancing shareholder value through strategic capital allocation. The repurchases will be conducted in open market transactions, adhering to SEC Rule 10b-18 and federal securities laws. Sezzle emphasizes flexibility, noting that the program can be extended, paused, or discontinued at the company's discretion. The fintech company aims to financially empower consumers with its interest-free installment payment platform.
- New $15 million stock repurchase program authorized.
- Completion of previous $5 million stock repurchase plan.
- Board's confidence in company momentum.
- Commitment to maximizing shareholder value.
- The stock repurchase program does not obligate the company to acquire any specific amount of stock and can be discontinued at any time.
Insights
The announcement of the new $15 million stock repurchase program indicates Sezzle's confidence in its financial health. Share buybacks can be a signal to the market that the company believes its stock is undervalued, which may lead to increased demand and potentially a higher stock price. This is often seen as a positive move, especially if the company has cash reserves to support the buyback without hampering its operational needs. Notably, Sezzle has already completed a $5 million repurchase plan, showing a consistent strategy to return value to shareholders.
However, it's essential to look at the broader context. The buyback will only be effective if the stock is indeed undervalued. Additionally, investors should consider if the company is using its cash reserves wisely. Is there a better return on investment in other strategic initiatives or growth opportunities? For Sezzle, a fintech company focused on growth, this balance is critical.
In summary, this buyback program suggests confidence and a shareholder-friendly approach but should be examined alongside the company's growth potential and financial stability.
From a market dynamics perspective, Sezzle's stock repurchase program could affect liquidity and market perception. By reducing the number of shares outstanding, the earnings per share (EPS) metric will likely improve, assuming earnings remain constant. This can have a favorable impact on key financial ratios and may attract more investors. Furthermore, stock buybacks can sometimes create a positive momentum in the stock market, especially if followed by bullish market sentiment.
However, investors should be cautious about the timing and execution of the buybacks. Market conditions, stock price volatility and external economic factors can influence the effectiveness of the repurchase program. If executed during a downturn, the effects might be muted. Additionally, while buybacks are a tool for capital allocation, they should not substitute for fundamental growth strategies, especially in a competitive fintech market.
Overall, the program could reinforce a positive market sentiment but requires careful monitoring of execution and broader market conditions.
Minneapolis, MN, June 20, 2024 (GLOBE NEWSWIRE) -- Sezzle Inc. (NASDAQ:SEZL) (Sezzle or Company) // Purpose-driven digital payment platform, Sezzle, today announced that the Company’s Board of Directors (the “Board”) has authorized the repurchase of an additional
"Our confidence in the Company’s continued momentum allows the Board to authorize a new
Repurchases under the program will be made in open market transactions in compliance with the Securities and Exchange Commission Rule 10b-18 and federal securities laws. The stock repurchase program does not obligate the Company to acquire any particular amount of common stock, and it may be extended, suspended or discontinued at any time at the Company’s discretion.
Contact Information
| Lee Brading, CFA Investor Relations +1 651 240 6001 InvestorRelations@sezzle.com | Erin Foran Media Enquiries +1 651 403 2184 erin.foran@sezzle.com |
About Sezzle Inc.
Sezzle is a fintech company on a mission to financially empower the next generation. Sezzle’s payment platform increases the purchasing power for millions of consumers by offering interest-free installment plans at online stores and select in-store locations. Sezzle’s transparent, inclusive, and seamless payment option allows consumers to take control over their spending, be more responsible, and gain access to financial freedom.
For more information visit sezzle.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting the financial condition of our business. Forward-looking statements include our expectations, whether stated or implied, regarding our financing plans and other future events.
Forward-looking statements generally can be identified by the use of words such as "anticipate," "expect," "plan," "could," "may," "will," "believe," "estimate," "forecast," "goal," "project," and other words of similar meaning. These forward-looking statements address various matters including statements regarding the timing or nature of future operating or financial performance or other events. Each forward-looking statement contained in this press release is subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement. Applicable risks and uncertainties include, among others: a change in our plans to effectuate our stock repurchase program; impact of the “buy-now, pay-later” (“BNPL”) industry becoming subject to increased regulatory scrutiny; impact of operating in a highly competitive industry; a change in our ability to remain listed on the Nasdaq Capital Market; impact of macro-economic conditions on consumer spending; our ability to increase our merchant network, our base of consumers and underlying merchant sales (UMS); our ability to effectively manage growth, sustain our growth rate and maintain our market share; our ability to meet additional capital requirements; impact of exposure to consumer bad debts and insolvency of merchants; impact of the integration, support and prominent presentation of our platform by our merchants; impact of any data security breaches, cyberattacks, employee or other internal misconduct, malware, phishing or ransomware, physical security breaches, natural disasters, or similar disruptions; impact of key vendors or merchants failing to comply with legal or regulatory requirements or to provide various services that are important to our operations; impact of the loss of key partners and merchant relationships; impact of exchange rate fluctuations in the international markets in which we operate; our ability to protect our intellectual property rights; our ability to retain employees and recruit additional employees; impact of the costs of complying with various laws and regulations applicable to the BNPL industry in the United States and Canada; and our ability to achieve our public benefit purpose and maintain our B Corporation certification. The Company cautions investors not to place considerable reliance on the forward-looking statements contained in this press release. You are encouraged to read the Company's filings with the SEC, available at www.sec.gov, for a discussion of these and other risks and uncertainties, including but not limited to those risks described in “Item 1A. Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 29, 2024. The forward-looking statements in this press release speak only as of the date of this document, and the Company undertakes no obligation to update or revise any of these statements. The Company's business is subject to substantial risks and uncertainties, including those referenced above. Investors, potential investors, and others should give careful consideration to these risks and uncertainties.
FAQ
What is Sezzle's new stock repurchase program?
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