File Photo / Tim Greenway
Melissa Smith
September 10, 2024
WEX bumps up share repurchase program to $2B
WEX Inc. (NYSE: WEX), a Portland-based financial services technology provider, has a green light from its board of directors to increase the company's share repurchase program by another $1 billion.
That means WEX has authorization to buy up to $2.05 billion of its own common stock through Dec. 31, 2025.
“This is yet another important milestone in the execution of our balanced capital allocation framework that is key to our value creation strategy,” said CEO Melissa Smith, who also serves as president and chair of WEX.
“Our strong balance sheet and highly cash generative business model enable us to invest in growth while also effectively returning capital to shareholders,” she added.
WEX provides fintech services to businesses in the areas of fleet mobility and fueling, corporate payments, travel industry payments and employee and member benefits.
The company has spent more than $1 billion on share buybacks since restarting its share buyback program in August 2022. Earlier this year, the program was increased to $1.05 billion.
Under the amended program, repurchases may be made on a discretionary basis from time to time through the end of 2025. Those may be undertaken via various routes including open market purchases, privately negotiated programs and block trades.
While timing and amount of any transactions are subject to the company’s discretion, WEX is not obligated to acquire any specific number of shares. In addition, the program may be modified, discontinued or suspended at any time.
In July, WEX posted second-quarter earnings that beat Wall Street estimates but scaled back its full-year financial forecast.
As of Monday's close, WEX shares have a market value of $7.9 billion. Shares are trading around 4% lower than a year ago.
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