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Pathward Financial (CASH) Announces New Share Repurchase Plan
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Boosting its shareholders’ wealth, Pathward Financial, Inc. (CASH - Free Report) has announced a new share repurchase program, through which, it can buy back up to an aggregate of 7 million shares of its outstanding common stock on or before Sep 30, 2028.
Shares of the company have been trending upward in the initial hours of today’s trading session, following the announcement.
CASH has an existing share repurchase program in place. In September 2021, the board of directors of this Sioux Falls, SD-based company authorized the repurchase of 6 million shares of its outstanding common stock through Sep 30, 2024. From the beginning of fiscal 2023 through Aug 24, 2023, Pathward Financial repurchased around 4.3 million shares and had almost 1.7 million shares remaining under the program.
Douglas J. Hajek, chairperson of CASH’s board of directors, commented, "The approval of a new share repurchase authorization reflects our Board of Directors’ belief in the underlying momentum of our business and our continued confidence in the company’s strong performance, consistent with our thoughtful approach to capital management."
In addition, the company declared a cash dividend of 5 cents per share for the fourth quarter of fiscal 2023. The dividend will be paid out on Oct 2, to shareholders of record as of Sep 12.
CASH maintains a healthy capital position. As of Jun 30, 2023, it had a total debt of $264.2 million, which was significantly lower than the cash and cash equivalent balance of $515.3 million. Also, the company’s debt/equity ratio of 0.05 compares favorably with the industry’s average of 0.39, reflecting its relatively strong financial health.
Further, this July, Pathward Financial posted solid third-quarter fiscal 2023 results. It reported quarterly earnings of $1.76 per share, beating the Zacks Consensus Estimate of $1.42 per share. Moreover, analysts seem bullish regarding the company’s fiscal 2023 earnings, with estimates having been revised 5.3% upward over the past 60 days.
Thus, given its decent liquidity position and earnings strength, CASH is expected to continue with efficient capital deployment activities, thereby enhancing shareholders' value.
In the past three months, shares of CASH have gained 4.7% compared with the industry's upside of 9.4%.
Princeton Bancorp, Inc. (BPRN - Free Report) recently rewarded its shareholders with enhanced capital-deployment activities by introducing a new share-repurchase program.
The new program allows BPRN to repurchase up to 5% of its outstanding shares of common stock (314,000 shares as of Aug 10, 2023), for a total cost of not more than $10.7 million.
CF Bankshares, Inc. (CFBK - Free Report) also announced a new share repurchase program. Under the plan, the board of directors of this Columbus, OH-based bank has authorized the repurchase of up to an aggregate of 250,000 shares on or before Jun 30, 2024.
CFBK announced its previous stock repurchase program on Jan 28, 2021, which authorized the buyback of up to an aggregate of 250,000 of the company’s common stock.
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Pathward Financial (CASH) Announces New Share Repurchase Plan
Boosting its shareholders’ wealth, Pathward Financial, Inc. (CASH - Free Report) has announced a new share repurchase program, through which, it can buy back up to an aggregate of 7 million shares of its outstanding common stock on or before Sep 30, 2028.
Shares of the company have been trending upward in the initial hours of today’s trading session, following the announcement.
CASH has an existing share repurchase program in place. In September 2021, the board of directors of this Sioux Falls, SD-based company authorized the repurchase of 6 million shares of its outstanding common stock through Sep 30, 2024. From the beginning of fiscal 2023 through Aug 24, 2023, Pathward Financial repurchased around 4.3 million shares and had almost 1.7 million shares remaining under the program.
Douglas J. Hajek, chairperson of CASH’s board of directors, commented, "The approval of a new share repurchase authorization reflects our Board of Directors’ belief in the underlying momentum of our business and our continued confidence in the company’s strong performance, consistent with our thoughtful approach to capital management."
In addition, the company declared a cash dividend of 5 cents per share for the fourth quarter of fiscal 2023. The dividend will be paid out on Oct 2, to shareholders of record as of Sep 12.
CASH maintains a healthy capital position. As of Jun 30, 2023, it had a total debt of $264.2 million, which was significantly lower than the cash and cash equivalent balance of $515.3 million. Also, the company’s debt/equity ratio of 0.05 compares favorably with the industry’s average of 0.39, reflecting its relatively strong financial health.
Further, this July, Pathward Financial posted solid third-quarter fiscal 2023 results. It reported quarterly earnings of $1.76 per share, beating the Zacks Consensus Estimate of $1.42 per share. Moreover, analysts seem bullish regarding the company’s fiscal 2023 earnings, with estimates having been revised 5.3% upward over the past 60 days.
Thus, given its decent liquidity position and earnings strength, CASH is expected to continue with efficient capital deployment activities, thereby enhancing shareholders' value.
In the past three months, shares of CASH have gained 4.7% compared with the industry's upside of 9.4%.
Image Source: Zacks Investment Research
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Share Buyback Plans of Other Banks
Princeton Bancorp, Inc. (BPRN - Free Report) recently rewarded its shareholders with enhanced capital-deployment activities by introducing a new share-repurchase program.
The new program allows BPRN to repurchase up to 5% of its outstanding shares of common stock (314,000 shares as of Aug 10, 2023), for a total cost of not more than $10.7 million.
CF Bankshares, Inc. (CFBK - Free Report) also announced a new share repurchase program. Under the plan, the board of directors of this Columbus, OH-based bank has authorized the repurchase of up to an aggregate of 250,000 shares on or before Jun 30, 2024.
CFBK announced its previous stock repurchase program on Jan 28, 2021, which authorized the buyback of up to an aggregate of 250,000 of the company’s common stock.