Off the Hook YS Inc. (AMEX:OTH) shares climbed 14.1% on Thursday after the pre-owned boat retailer announced a new $1 million share buyback, a move seen as a vote of confidence from management in the company’s long-term outlook.
Under the authorization, the company can repurchase its common shares at management’s discretion. Any buybacks would be funded through existing cash balances and future operating cash flow.
“Today’s stock price and market capitalization do not, in management’s view, fully reflect the underlying value of our business, our cash-generation potential, or the long-term opportunity we see ahead,” said Brian John, Chief Executive Officer of Off The Hook Yachts.
The company stressed that, alongside the repurchase program, it will continue to focus on investments aimed at driving profitable growth. These include expanding inventory, advancing technology initiatives, and pursuing strategic real estate and operational developments.
Management added that it is working toward building a “category-defining platform” in the pre-owned boat market by leveraging its technology, inventory expertise and growing national presence. The share buyback does not come with a fixed timeline, and the company noted that it may pause or terminate the program at any time.