AgriFORCE Growing Systems Ltd. (NASDAQ:AGRI) shares are trading higher Monday after the company announced a $1 million share repurchase program.
The Details:
Agriforce said its board of directors has authorized a share repurchase program under which the company may repurchase up to $1 million of its outstanding common shares for a period of six months. Agriforce's board will periodically review the program which could be extended or increased.
Last week, the company announced it received a patent for its Automated Growing Systems which covers moving production lines of either plants or flowers within a growing facility through the use of conveyor belts and other methods.
"This patent adds dynamic value to our ever-expanding portfolio of patented technology aimed at innovating agribusiness," commented Jolie Kahn, Agriforce's executive turnaround consultant.
"We remain committed to exploring new opportunities to empower farmers and agribusinesses to maximize their market position and build long-term shareholder value for our stakeholders."
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Agriforce shares are moving on heavy trading volume following the share repurchase program announcement with more than 45 million shares changing hands before the opening bell, according to data from Benzinga Pro.
Is AGRI A Good Stock To Buy?
An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like AgriFORCE Growing Systems‘ page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.
These are known as capital allocation programs. Agriforce Growing Systems does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.
For example, if you're looking to earn an annualized return of 14.48%, you'll need to buy a share of Ready Capital by June 28, 2024. Once done, you can expect to receive a nominal payout of $0.30 on July 31, 2024.
Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on AgriFORCE Growing Systems will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.
AGRI Price Action: According to Benzinga Pro, Agriforce shares are up 17% at 9 cents at the time of publication Monday.
Image: Jatuphon Buraphon from Pixabay