Western New England Bancorp, Inc. Announces Completion of 2022 Repurchase Plan
Western New England Bancorp, Inc. (WNEB) announced the completion of its 2022 stock repurchase plan on June 6, 2024, buying back shares at an average price of $7.34. The Board approved a new repurchase plan on May 21, 2024, allowing up to 1 million shares, about 4.6% of the company's outstanding stock, to be repurchased. The new plan permits the repurchase of shares through open market transactions or privately negotiated transactions, depending on several factors like stock price, laws, and market conditions. The repurchase program can be modified or discontinued at any time.
- Completion of 2022 repurchase plan at $7.34 per share.
- Authorization to repurchase up to 1 million shares under the new 2024 plan.
- New repurchase plan represents 4.6% of outstanding shares.
- Flexibility in repurchasing methods including open market and privately negotiated transactions.
- Repurchase program can be modified, suspended, or discontinued, introducing uncertainty.
- Dependence on multiple variables like stock price, regulatory limitations, and market conditions for repurchases.
Insights
The completion of Western New England Bancorp's 2022 Repurchase Plan and the initiation of a new 2024 Repurchase Plan may have several implications for investors. Share repurchase plans are often viewed as a signal that the company believes its stock is undervalued. By reducing the number of outstanding shares, these plans can also improve earnings per share (EPS) and potentially support the stock price.
Buying back shares at an average price of
Finally, the authorization of a new repurchase plan that allows for the repurchase of up to
From a market perspective, stock repurchase programs can affect supply and demand dynamics. Reducing the number of shares available in the market can provide upward pressure on the stock price, assuming demand remains constant or increases. Investors might find this attractive, particularly in a market where the company is perceived as a stable performer.
Another consideration is the stock price movement relative to the buyback. The language of the PR indicates flexibility in the timing and method of repurchases, which suggests that the company aims to capitalize on favorable market conditions. This strategic flexibility can be beneficial for optimizing shareholder returns.
Rule 10b5-1: This rule allows for pre-arranged trading plans, which can help mitigate concerns about insider trading during repurchase programs. Investors should see this as a positive measure that ensures transparency and adherence to regulatory requirements.
Overall, the initiation of a new repurchase plan aligns with the company's strategic use of buybacks as a tool for shareholder return, but the ultimate impact will depend on execution and market conditions.
WESTFIELD, Mass., June 10, 2024 (GLOBE NEWSWIRE) -- Western New England Bancorp, Inc. (the “Company” or “WNEB”) (NasdaqGS: WNEB), the holding company for Westfield Bank (the “Bank”), announced that on June 6, 2024, the Company completed all repurchases under its existing stock repurchase plan (“2022 Repurchase Plan”) at an average price per share of
On May 21, 2024, the Board of Directors of the Company authorized a new stock repurchase plan (“2024 Repurchase Plan”), pursuant to which the Company may repurchase up to 1.0 million shares, or approximately
The Company may repurchase shares from time to time in open market transactions or through privately negotiated transactions at the Company’s discretion or pursuant to any trading plan that may be adopted in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934. The amount, timing and nature of any share repurchases will be based on a variety of factors, including the trading price of the Company’s common stock, applicable securities laws restrictions, regulatory limitations and market and economic factors. The repurchase program may be modified, suspended or discontinued at any time, at the Company’s discretion.
About Western New England Bancorp, Inc.
Western New England Bancorp, Inc. is a Massachusetts-chartered stock holding company and the parent company of Westfield Bank, CSB Colts, Inc., Elm Street Securities Corporation, WFD Securities, Inc. and WB Real Estate Holdings, LLC. Western New England Bancorp, Inc. and its subsidiaries are headquartered in Westfield, Massachusetts and operate 25 banking offices throughout western Massachusetts and northern Connecticut. To learn more, visit our website at www.westfieldbank.com.
Forward-Looking Statements
This press release contains statements that are forward-looking and are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on any such forward-looking statements contained in this press release, which speak only as of the date made. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors discussed under the caption “Risk Factors” in Western New England Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2023 and in its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024. Western New England Bancorp does not undertake and specifically declines any obligation to publicly release the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
For further information contact:
James C. Hagan, President and Chief Executive Officer
Guida R. Sajdak, Executive Vice President and Chief Financial Officer
Meghan Hibner, First Vice President and Investor Relations Officer
413-568-1911
FAQ
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