WAUWATOSA - Waterstone Financial , Inc. (NASDAQ: NASDAQ:WSBF) announced today that its Board of Directors has approved the repurchase of up to an additional 2 million shares of its common stock. This move supplements the existing stock repurchase program, which had 224,852 shares remaining available for buyback. With the new authorization, the company has a total of 2,224,852 shares, or approximately 11.2% of its issued and outstanding common stock, available for repurchase as of today.
The repurchases will be conducted depending on various factors, including market conditions, stock prices, available funds, and alternative capital allocations. The company may execute the buybacks through open-market transactions, block trades, privately negotiated deals, or under a Rule 10b5-1 trading plan, which allows companies to repurchase their shares at times when they might otherwise be prevented from doing so under insider trading laws.
The shares that are repurchased will be classified as authorized but unissued stock. Notably, the program does not commit Waterstone Financial to a specific number of shares to repurchase and can be altered, paused, or terminated at any time based on a range of factors such as market conditions and investment opportunities.
Waterstone Financial, Inc. is the parent company of WaterStone Bank, a savings and loan institution established in 1921. The bank provides a comprehensive range of personal and business banking services and operates multiple branches across Wisconsin. It also owns Waterstone Mortgage, which offers lending services in 48 states.
InvestingPro Insights
In light of Waterstone Financial, Inc.'s (NASDAQ: WSBF) announcement to extend its stock repurchase program, noteworthy insights emerge from InvestingPro data and tips. With a market capitalization of $218.06 million and a P/E ratio that stands at 23.26 based on the last twelve months as of Q4 2023, the company appears to be valued by the market with a certain degree of optimism regarding its earnings potential.
One of the key InvestingPro Tips for Waterstone Financial is the aggressive share buyback strategy that management has been pursuing. This aligns with the company's recent announcement and could signal confidence from management in the company's future prospects. Additionally, the company has maintained dividend payments for 11 consecutive years, boasting a dividend yield of 5.2% as of the latest data, which is attractive to income-focused investors.
InvestingPro Data highlights a mixed financial performance with a revenue decline of 19.06% over the last twelve months as of Q4 2023. Despite this, analysts remain optimistic about the company's profitability, as evidenced by the prediction of net income growth this year. This could be a sign of effective cost management or successful strategic initiatives that are expected to bear fruit.
Investors interested in a more in-depth analysis can find additional InvestingPro Tips on Waterstone Financial. There are currently 7 more tips available, which provide a comprehensive look at the company's financial health and future outlook. To access these insights, visit InvestingPro's dedicated page for Waterstone Financial at https://www.investing.com/pro/WSBF and remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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