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WisdomTree (WETF) Boosts Share Buyback Authorization By $85.7M

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WisdomTree Investments, Inc. WETF has received the approval from its board of directors for an $85.7-million increase to its existing stock repurchase program.

The authorization is valid till Apr 27, 2025, and includes purchases to offset future equity grants made under its equity plans. However, shares of the company fell 1.6% on the announcement of the news.

The new program allows WETF to repurchase upto $100-million worth of shares. The original program was announced in 2014 when WisdomTree repurchased approximately 20.3 million shares worth $145.7 million. This includes a repurchase of $34.5 million of shares in 2021.

Share buyback aside, WisdomTree has been regularly paying a quarterly dividend of 3 cents per share. This represents a dividend yield of 2.18% based on the last day’s closing price of $5.42, which was favorable compared with the industry’s yield of 0.40%. The yield provides a steady and attractive income stream for its investors.

The company continues to invest in its business, and at the same time, is returning the excess capital to stockholders through strong free cash flows. Cost-saving efforts, improved efficiency and solid investments continue to support WETF's financials. It aims to create long-term shareholder value organically and inorganically, as well as through strategic capital deployments.

Over the past year, shares of WETF have declined 1.7% against 7% growth of the industry it belongs to.

Zacks Investment Research
Zacks Investment Research


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WisdomTree currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Other Finance Stocks That Took Similar Steps

Over the past couple of months, several finance companies have rewarded shareholders with new share-repurchase programs. Some of these are M&T Bank Corporation MTB, CVB Financial Corp. CVBF and BankUnited, Inc. BKU.

M&T Bank announced that its board of directors has re-authorized its stock repurchase program, which was suspended in 2021 until the closing of the People's United Financial acquisition. The buyback allows up to $800 million for common stock repurchases.

Other than repurchases of common stock, M&T Bank hiked its quarterly dividend by 9% to $1.20 per share in November 2021.

CVB Financial also announced a new share repurchase plan. Its board of directors has approved the repurchase of up to 10 million shares of CVBF’s outstanding stock. There is no expiration date for this program.

The new repurchase plan replaces the previous one, which authorized CVB Financial to buy back up to 10 million shares. This plan was announced in August 2016. As of Dec 31, 2021, authorization to repurchase 4.1 million shares remained.

BankUnited, has announced a new share repurchase plan. The company’s board of directors has approved the repurchase of up to $150 million in shares of BKU’s outstanding stock. There is no expiration date for this program.

The new repurchase plan is of the same value as the previous one announced in October 2021. As of Dec 31, 2021, $26.5 million worth of shares were left to be repurchased under this old program.


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