Freshpet, Inc. (NASDAQ: FRPT) shares gained ground Thursday, on the announcement that its Board of Directors has authorized the Company to repurchase up to $150 million of its common stock.
“Our Board’s approval of this share repurchase program reflects our strong financial position and balance sheet,” commented CFO John O’Connor.
“Investing in our business to capture the large and growing opportunity in fresh pet food remains our highest priority for capital deployment.
“With proceeds from the sale of our equity investment in Ollie, efficiencies from our operations, and positive free cash flow, we have the financial flexibility to invest in new technologies, capabilities, and innovation to extend our leadership position and fuel our growth, while simultaneously returning capital to shareholders when we believe our stock trades below intrinsic value.”
The share repurchase authorization is effective immediately, does not have a fixed expiration date, does not obligate Freshpet to repurchase any specific number of shares and may be suspended or discontinued at any time.
It permits shares to be repurchased from time to time at management's discretion through a variety of methods, including a 10b5-1 trading plan, open market purchases, privately negotiated transactions, or transactions otherwise in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended.
FRPT shares tacked on $1.36, or 2.8%, to $49.71.
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