ChannelAdvisor Corporation, a leading provider of cloud-based e-commerce solutions that enable brands and retailers to increase global sales, today announced that it has completed the $25 million share repurchase program authorized by its Board of Directors in August of 2021. Through this program, the company repurchased and retired over 1.8 million shares of common stock in aggregate, or approximately 6% of shares outstanding, at an average price of $13.67 per share.
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Additionally, the company’s Board of Directors has authorized an additional share repurchase program of up to $25 million worth of shares of ChannelAdvisor common stock through June 30, 2023. This timeframe may be extended or shortened by the Board of Directors. Repurchases, if any, will be made from time-to-time on the open market at prevailing prices or in negotiated transactions off the market.
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“Our capital allocation framework emphasizes generating returns on invested capital above our cost of capital, and our share repurchase programs are an important part of that framework,” said Rich Cornetta, ChannelAdvisor’s chief financial officer. “Based on our historical and anticipated free cash flow yield, we felt that our recent share price represented a compelling opportunity, and that executing our buyback was a tax-efficient way to return some of our surplus capital to shareholders. We are debt-free with a strong balance sheet, and our new repurchase authorization is intended to ensure that we continue to have this tool in our capital allocation toolbox going forward.”