Australian media company, HT&E Ltd (ASX:HT1) saw its shares rise as much as 7.5% to a high of AU$1.29 in morning trading, before retreating to about AU$1.25.
HT&E, also known as Here, There & Everywhere, is a media and entertainment business, operating radio, audio and digital businesses. It has a 25% stake in mobile messaging app Soprano.
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HT&E share buyback program
The company announced today that it repurchased more than 15,600 of its own shares. That brings total repurchases to up over 34 million shares. It has spent more than AU$56 million on the total buyback program.
HT&E launched the share buyback plan in June 2018, but later suspended it. It reinstated the repurchase program in August 2022, as it believed its stock was undervalued. HT&E shares have declined about 40% since the beginning of the year.
HT&E has emphasised its ability to generate strong cash flows, at between AU$35 million and AU$45 million in a normal year. The company also said it has the ability to realise additional value through the sale of noncore assets.
HT&E share price target
According to TipRanks’ analyst rating consensus, HT&E stock is a Moderate Buy based on four Buys, one Hold, and one Sell. The average HT&E share price target of AU$1.86 implies about 49% upside potential.
HT&E stock is receiving positive mentions on financial blogs. TipRanks data shows that financial blogger opinions are 100% Bullish on HT1, compared to a sector average of 66%.
Closing remarks
The buyback program has the benefit of reducing HT&E’s share supply and creating scarcity that has the potential to drive up the price of the remaining shares. Apart from returning cash to investors through the share repurchase program, HT&E also pays dividends and currently offers an above-average yield of 7.48%.
