Nortech Systems Incorporated (NASDAQ: NSYS) is flying early on in the trading session this morning, and for good reason. The company announced that it would be moving forward with a share repurchase program, exciting investors and sending the stock on a run for the top. Today, we’ll talk about:
- The share repurchase program;
- what we’re seeing from NSYS as a result; and
- what we’ll be watching for with regard to the stock ahead.
NSYS Climbs On Share Repurchase Program
As mentioned above, Nortech Systems is having an incredibly strong start to the trading session this morning after announcing a share repurchase program. In a press release issued early this morning, the company announced that its board of directors has approved another installment of a stock repurchase program. This installment is similarto the company’s inaugural repurchase program that expired last month.
In the release, NSYS said that the approved program will authorize the company to repurchase shares of its common stock in an amount up to $250,000 that will take place in segments of $62,500 per quarter and will run through July, 2019. Under the original repurchase program, the company purchased shares up to its cap of $250,000.
In the release, NSYS also announced that David Kuni, Chairman of the Board, has concurrently established a plan to purchase shares. Kunin plans purchase up to $25,000 in shares through July 2019. In a statement, Rich Wasielewsky, President and CEO at NSYS, had the following to offer:
The next installment of this repurchase program shows that Nortech’s board and management continue to share confidence in our future direction and potential… Our strategic initiatives are gaining traction across all our locations and markets, aided by the improving global economic outlook.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In the case of Nortech Systems, the news that was released proved to be overwhelmingly positive. After all, investors love it when companies are doing so well that they repurchase shares from the open market. So, it comes as no surprise to see that excited investors are sending the stock screaming for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:34), NSYS is trading at $4.45 per share after a gain of $0.42 per share or 10.56% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on NSYS. In particular, we’re interested in following the story surrounding the share repurchase program and excited to follow the growth of the company as things are going well at the moment. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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