Nonlethal weapons manufacturer Byrna Technologies may repurchase up to $10 million of its stock under a new buyback program. At the start of trading on Monday, August 5, quotes on Byrna were on the rise but eventually ended the session down 2%.
Details
In the report filed with the U.S. SEC, Byrna Technologies stated that its board of directors had approved a $10 million stock repurchase program. Explaining the move, CEO Bryan Ganz noted that Byrna stock is still undervalued by the market despite the company’s strong operating performance.
Byrna may repurchase shares through on-exchange or off-exchange transactions at prices and volumes deemed attractive by its management over the next two years, according to the filing.
Market reaction
After Byrna announced the buyback plan on Monday, its stock got a slight bump. The share price rose to as high as $8.67, up 2.0% versus the previous day’s close. However, it began to decline after that, eventually ending the session down 2.2%.
Byrna’s market capitalization has grown nearly 30% since the beginning of the year and almost 140% over the last 12 months. Analysts recommend buying the stock, with a target price of $18.13 per share, according to MarketWatch.
About Byrna Technologies
Byrna Technologies manufactures nonlethal weapons and ammunition. The company got started almost 20 years ago, initially developing weapons for law enforcement and the military, though this did not generate the expected revenue. Success came when the company shifted its focus to the needs of retail customers, including housewives, hunters, and weapons collectors. Now, its products are mentioned on Fox News, social media, and podcasts, and can be purchased on Amazon.
Byrna highlights that it has steadily grown revenue at an impressive pace over the last several quarters, with its best-ever revenue coming in the second quarter of 2024. In that quarter, net revenue jumped 76% year-over-year to $20.3 million, while net profit was $2.1 million, versus a net loss of $1.1 million in the same period last year.
This steady improvement makes the management more upbeat about the company’s long-term prospects, Byrna notes.
