Moatable Inc., a prepackaged software services company, announced today that its board of directors has approved the expansion of its share repurchase program. Originally set to expire on December 31, 2024, the program will now run until December 31, 2026.
The plan authorizes the repurchase of up to $15 million of the company’s shares, including American depositary shares traded under the symbol MTBLY on the OTC Pink market. As of today, Moatable Inc. has repurchased 11.8 million worth of its shares.
Repurchases are made in the open market, pursuant to Rule 10b-18 of the Securities Exchange Act of 1934, which sets certain prices, market volume, and time limits to prevent market manipulation. Although the company is not obligated to repurchase shares, the extension provides additional time to buy back shares when management deems it beneficial to the company and its shareholders.
The decision to repurchase shares will be based on a variety of factors, including market conditions and other investment opportunities. There is no guarantee that further repurchases will occur, but the expansion allows flexibility in the company’s capital allocation strategy.
InvestingPro Insights
The expansion of Moatable Inc.’s (MTBLY) share repurchase program is aligned with the latest InvestingPro data and tips, providing more context to the company’s financial strategy. According to InvestingPro Tips, management has been buying shares aggressively, which is directly reflected in the company’s decision to extend the buyback program. This aggressive recovery strategy is also supported by the company’s strong financial position, as InvestingPro data shows that MTBLY holds more cash than debt on its balance sheet.
The company’s gross profit margin of 77.5% for the last twelve months from Q2 2024 suggests that Moatable Inc. has greater financial flexibility to continue its share repurchase program. Additionally, with a price-to-book ratio of 0.27, the stock appears to be trading at a discount relative to its book value, which could make share repurchases an attractive investment.
For investors looking for a more comprehensive analysis, InvestingPro offers 13 additional MTBLY tips, which provide a deeper understanding of the company’s financial health and market conditions.
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