CSW Industrials announces a $200 million share repurchase program, enhancing shareholder value and reflecting confidence in future growth.
Quiver AI Summary
CSW Industrials, Inc. has announced a new $200 million share repurchase program, which replaces its previous $100 million program. Since 2017, the company has repurchased about 2.0 million shares for a total of $152 million. CEO Joseph B. Armes stated that this initiative reflects the Board's confidence in the company's strong business model and future growth potential. The repurchases may occur in the open market or through private transactions at the company’s discretion, depending on market conditions and capital needs. The program is set to expire on December 31, 2026, but may be extended or modified as necessary. CSWI operates in diversified industrial segments, providing reliable products for various markets, including HVAC/R, plumbing, and energy.
Potential Positives
- CSW Industrials has authorized a new $200 million share repurchase program, signaling strong confidence from the Board of Directors in the company’s financial health and future growth prospects.
- The share repurchase program demonstrates CSWI's commitment to returning value to shareholders, having returned over $200 million through share repurchases and dividends since the company's spin-off in 2015.
- The option to repurchase shares at the company’s discretion allows for strategic financial flexibility in response to market conditions, potentially enhancing shareholder value further.
Potential Negatives
- The replacement of the existing $100 million share repurchase program with a new $200 million program may signal to investors that the company is prioritizing short-term stock price support over long-term investments in growth.
- The Board's discretion to limit or terminate the repurchase program at any time could lead to uncertainty about future shareholder returns, potentially impacting investor confidence.
- The significant focus on share repurchase may detract from necessary reinvestment in the company's operations or innovation, raising concerns about future growth and competitiveness.
FAQ
What is the new share repurchase program announced by CSW Industrials?
CSW Industrials has authorized a new $200 million share repurchase program, replacing the previous $100 million program.
How much has CSW Industrials repurchased since 2017?
Since 2017, CSW Industrials has repurchased approximately 2.0 million shares for a total of $152 million.
What is the purpose of the repurchase program?
The repurchase program aims to demonstrate the Board's confidence in CSWI's business model and enhance long-term shareholder value.
When does the new share repurchase program expire?
The new program is set to expire on December 31, 2026, but may be extended or terminated earlier.
Which sectors does CSW Industrials serve?
CSW Industrials serves sectors including HVAC/R, plumbing, electrical, general industrial, and rail transportation among others.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$CSWI Insider Trading Activity
$CSWI insiders have traded $CSWI stock on the open market 44 times in the past 6 months. Of those trades, 0 have been purchases and 44 have been sales.
Here’s a breakdown of recent trading of $CSWI stock by insiders over the last 6 months:
- JOSEPH B ARMES (Chairman, President & CEO) has traded it 43 times. They made 0 purchases and 43 sales, selling 7,000 shares.
- JEFF UNDERWOOD (SVP, GM Contractor Solutions) sold 362 shares.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$CSWI Hedge Fund Activity
We have seen 197 institutional investors add shares of $CSWI stock to their portfolio, and 144 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- BLACKROCK, INC. added 1,367,637 shares (+119.2%) to their portfolio in Q3 2024
- VANGUARD GROUP INC added 310,525 shares (+20.5%) to their portfolio in Q3 2024
- T. ROWE PRICE INVESTMENT MANAGEMENT, INC. removed 302,890 shares (-52.9%) from their portfolio in Q3 2024
- STATE STREET CORP added 255,849 shares (+71.7%) to their portfolio in Q3 2024
- CAPITAL WORLD INVESTORS added 216,597 shares (+57.5%) to their portfolio in Q3 2024
- ALLSPRING GLOBAL INVESTMENTS HOLDINGS, LLC removed 199,335 shares (-43.5%) from their portfolio in Q3 2024
- CAPITAL RESEARCH GLOBAL INVESTORS added 180,461 shares (+inf%) to their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
DALLAS, Nov. 18, 2024 (GLOBE NEWSWIRE) -- CSW Industrials, Inc. (Nasdaq: CSWI) today announced its Board of Directors authorized a new $200 million share repurchase program, which replaces the existing $100 million program. Since the commencement of CSWI’s share repurchase program in 2017, the Company has repurchased approximately 2.0 million shares for a total of $152 million.
Joseph B. Armes, CSWI Chairman, Chief Executive Officer, and President commented, “This new $200 million share repurchase program emphasizes the Board’s confidence in CSWI’s strong business model, future growth, and cash generation. Since the Company’s spin-off in 2015, we have returned over $200 million to shareholders through share repurchases and dividends, demonstrating our commitment to enhance long-term shareholder value.”
Under the newly authorized program, shares may be repurchased daily or from time to time in the open market and in privately negotiated transactions. All repurchases will be made at the Company’s discretion, based on ongoing assessments of the business’ capital allocation priorities, the market price of its common stock and general market conditions. The Board of Directors has established an expiration date of December 31, 2026, for completion of the repurchase program; however, the program may be extended in the future, or it may be limited or terminated at any time without notice.
About CSW Industrials
CSW Industrials is a diversified industrial growth company with industry-leading operations in three segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions. CSWI provides niche, value-added products with two essential commonalities: performance and reliability. The primary end markets we serve with our well-known brands include: HVAC/R, plumbing, electrical, general industrial, architecturally-specified building products, energy, mining, and rail transportation. For more information, please visit
www.cswindustrials.com
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Investor Relations
Alexa Huerta
Vice President Investor Relations, & Treasurer
214-489-7113
[email protected]
