First Busey (BUSE) has disclosed a new risk, in the Share Price & Shareholder Rights category.
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First Busey Corporation’s stock repurchase plan, first authorized in 2015, raises potential risk as the company may not utilize this tool effectively, as evidenced by no shares being repurchased in the first quarter of 2024. The continuous amendments to increase the number of shares available for repurchase, with the latest on May 24, 2023, for an additional 2 million shares, suggest a significant capital allocation that could be tied up. With 1,919,275 shares still available for repurchase as of March 31, 2024, there lies a question about First Busey’s strategy and discipline in returning value to shareholders or managing excess capital, which may affect investor confidence and stock performance.
The average BUSE stock price target is $28.00, implying 19.20% upside potential.
To learn more about First Busey’s risk factors, click here.
