SINA Declares New $500 Million Share Repurchase Program
Zacks Investment Research | Jan 02, 2020 10:05PM ET
SINA’s (NASDAQ:SINA) board of directors recently authorized a share repurchase program. Also called the 2020 New Program, it allows the company to repurchase up to $500 million of its American depositary shares (ADS) over the next 12 months.
The new program comes after the expiry of the 2019 Program, which was announced in 2018 and authorized the company to repurchase its own ADS with an aggregate value of up to $500 million up to the end of December 2019.
As of Dec 31, 2019, the company repurchased approximately 2.2 million shares for approximately $82.1 million under the 2019 Program.
The shares may be repurchased on the open market at prevailing market prices or in negotiated transactions off the market and are expected to be funded from the company’s existing cash balance.
Notably, as of Sep 30, 2019, SINA's cash, cash equivalents and short-term investments were $2.9 billion, compared with $2.15 billion reported in the previous quarter.
The new buyback program is expected to aid the company’s bottom-line in the upcoming quarters. This has been the primary reason behind acceleration in SINA’s stock price since the announcement. The company’s stock price closed at $43.36 on Jan 2, 2020, up 8.6% from Dec 31.
Sina Corporation Price and Consensus
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