THORNTON, Colo. - MYR Group Inc. (NASDAQ: NASDAQ:MYRG), a prominent contractor for electric utility infrastructure, has disclosed the commencement of a new share repurchase initiative. The program, effective May 9, 2024, allows the repurchase of up to $75 million of its common stock, contingent on market conditions and other factors.
The initiative is set to conclude by November 8, 2024, or when the repurchase sum is fully utilized, whichever occurs first. The company clarified that there is no obligation to purchase a predetermined amount of shares and the board may alter or cease the program at its discretion.
According to Rick Swartz, President and CEO of MYR Group, this move reflects the company's faith in its market segments and its prospects for long-term growth. Swartz emphasized the company's dedication to enhancing shareholder value and its strategic approach to capital allocation, which includes organic growth, strategic acquisitions, and stock repurchases.
The company plans to finance the buyback through existing cash reserves and potential borrowings under its credit facility. This announcement follows the nearing conclusion of a similar repurchase program initiated on November 9, 2023, which is set to expire on May 8, 2024.
MYR Group, operating in the United States and Canada, provides a wide array of services through its Transmission & Distribution and Commercial & Industrial segments. The company's clientele includes various utilities, contractors, and government agencies.
This press release also contains forward-looking statements regarding future operations and financial performance. These statements are subject to risks and uncertainties, and actual results may differ from those projected. The company has advised that these forward-looking statements are based on current expectations and should be considered in conjunction with the risk factors outlined in its regulatory filings.
The information provided is based on a press release statement from MYR Group Inc.
InvestingPro Insights
As MYR Group Inc. embarks on a new share repurchase program, it's important to consider the company's financial health and market performance. Here are some key metrics and insights from InvestingPro that could provide investors with a clearer picture of what to expect:
InvestingPro Data:
- Market Cap: $2.56 billion USD
- P/E Ratio: 29.27
- Revenue Growth (last twelve months as of Q1 2024): 14.58%
The company's market capitalization stands at a robust $2.56 billion USD, signaling a strong market presence. However, the P/E ratio of 29.27 suggests that MYRG's stock might be trading at a premium relative to its near-term earnings growth. Additionally, the revenue growth of 14.58% over the last twelve months indicates a solid trajectory in the company's financial performance.
InvestingPro Tips:
1. MYRG's stock has experienced significant volatility, taking a considerable hit over the last week with a -15.69% return, and a -19.24% return over the last month.
2. Analysts have revised their earnings downwards for the upcoming period, which could be a factor in the recent stock price movements.
Despite the recent downturn in stock price, MYRG's strategic approach to capital allocation and the new share repurchase program may signal a commitment to long-term growth and shareholder value. Investors interested in a deeper analysis can find additional InvestingPro Tips at https://www.investing.com/pro/MYRG, including insights on the company's debt levels, profitability forecasts, and historical returns. Moreover, those seeking comprehensive investment analysis can use the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. There are 11 additional tips listed for MYR Group on InvestingPro that could further guide investment decisions.
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