- Summary:
- StoneX’s board of directors has approved a share repurchase program for 2023 fiscal year. We tell you more about it and its implications.
StoneX Group Inc, a provider of financial services, has announced that its Board of Directors has authorized the repurchase of up to 1,000,000 shares of its common stock. The repurchase will be for the upcoming fiscal year 2023. The resolution authorizing the share repurchase was passed on August 23, 2022. Moreover, repurchases will take place intermittently through open market purchases and private deals. The buyback program will launch on October 1, 2022, and run until September 30, 2023.
The decision to go through with the stock repurchase plan is ultimately up to the company’s upper management. Moreover, it will be “subject to market conditions and as permitted by securities laws and other legal, regulatory, and contractual requirements and covenants.”
Not a first by StoneX
Providing services such as execution, post-trade settlement, clearing, and custody, StoneX Group Inc. links its customers to the global markets across asset classes. Quarter 3 2022 saw the company’s CFD division produce Average Daily Volume of $13.1 billion. That was a significant drop from the previous quarter’s $14.9 billion. Nonetheless, that was a huge jump up from the $10.6 billion ADV recorded in all of fiscal 2021.
The current action follows the company’s pattern of repurchasing its own shares over the past two fiscal years. For the 2022 fiscal year, StoneX’s Board of Directors approved a plan to repurchase up to one million shares of common stock. The plan called for purchases to be made on an as-needed basis through open market acquisitions and private transactions. The repurchase will cover the period begining October 1, 2021, and ending on September 30, 2022.
A similar repurchase of up to 1.0 million shares of StoneX’s outstanding common stock between December 2020 and September 2021. The was approval by the Board of Directors took place on December 16, 2020. When a firm announces a program to repurchase its own shares of stock, it’s usually a sign that it’s optimistic about its future financial success. Therefore, investors are likely to see significant gains by the company’s share price in the coming days.