Tivity Health Authorizes $100M Share Repurchase Program; Shares Rise 7.1%

Shares of health improvement, fitness and social engagement solutions provider Tivity Health, Inc. (TVTY) rose 7.1% on Monday to close at $24.17 after the company announced that its board of directors authorized a $100 million share repurchase program.

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The timing and the number of shares to be repurchased will be determined by the board of directors by deliberating on the capital needs of the business, the market price of the company’s stock, general business and market conditions, and alternative investment opportunities.

The CEO of Tivity Health, Richard Ashworth, said, “We strongly believe that our free cash flow profile, growth prospects, and ability to deliver on our strategy to become the modern destination for healthy living represent an attractive investment opportunity. Funds for the share repurchase program will be supported by our strong cash flow from operations, financial flexibility from our recent debt refinancing and strength of our asset base.” (See Tivity Health stock chart on TipRanks)

Last month, Truist Financial analyst David S Macdonald reiterated a Hold rating on the stock. The analyst, however, lowered the price target from $28 to $25, which implies upside potential of 3.4% from current levels.

The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 2 Buys and 2 Holds. The average Tivity Health price target of $28.50 implies that the stock has upside potential of 17.9% from current levels.

Tivity Health scores an 8 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained about 72.3% over the past year.