Celsius Holdings Inc. (NASDAQ:CELH) shares jumped 6% in premarket trading Monday after the energy and wellness beverage maker announced a new $300 million share repurchase program, signaling confidence in its financial strength and long-term growth prospects.
The Board of Directors approved the buyback authorization, which has no expiration date and gives Celsius flexibility to repurchase shares at its discretion through open market purchases, private transactions, or Rule 10b5-1 trading plans.
Explaining the move, Chairman and CEO John Fieldly said the decision reflects the company’s belief that its shares are undervalued relative to its fundamentals. “We have a strong balance sheet and robust cash generation, which allow us to opportunistically repurchase shares when we believe they are undervalued – such as at times like these – while maintaining ample capacity to invest in our growth and reduce debt,” Fieldly stated.
The timing and volume of repurchases will depend on several factors, including share price, trading volume, and overall market conditions. Celsius also noted that the program can be modified, suspended, or terminated at any time, and the company is not obligated to repurchase any specific number of shares.
The new authorization underscores Celsius’ confidence in its financial health and cash flow generation, enabling it to enhance shareholder value while continuing to invest in innovation and expansion across its fast-growing beverage portfolio.