Summary: Central Garden & Pet Company saw its stock climb 2.9% on Tuesday after the company’s board approved a $100 million expansion of its share repurchase program. The authorization covers purchases of both common and Class A common stock using a mix of open-market and privately negotiated transactions, and it explicitly allows use of Rule 10b5-1 trading plans.
The board-approved increase is intended to allow management greater flexibility to repurchase shares. Company leadership has stated that it views the current market price of its shares as undervalued, making additional buybacks an opportune use of capital. The company noted that specific repurchase activity - both timing and the number of shares acquired - will be determined by a range of factors including price levels, applicable regulatory requirements, and general market conditions.
The expanded repurchase authority carries no expiration date and can be curtailed or terminated at any time without prior notice. That feature gives the company latitude to adjust program activity if circumstances change. Central Garden & Pet framed the move as a demonstration of confidence in its long-term prospects and a means of returning value to shareholders.
Central Garden & Pet operates in the pet and garden sectors and trades on the Nasdaq under two symbols: CENT for its common stock and CENTA for its Class A common shares. The buyback expansion and accompanying commentary from management were the direct catalysts for the intraday price increase reported Tuesday.
Key points
- Board authorized a $100 million expansion of the share repurchase program, covering both common and Class A common shares.
- Repurchases will occur via open-market and privately negotiated transactions and may include Rule 10b5-1 trading plans.
- The company signaled that it views current share prices as undervalued and that the program reflects confidence in its long-term outlook; sectors impacted include consumer goods, specifically pet and garden markets, and equity markets where CENT and CENTA trade.
Risks and uncertainties
- Actual repurchase timing and quantities depend on share price, regulatory requirements, and market conditions - any of these could limit buyback activity.
- The expanded program has no expiration but can be limited or terminated at any time, introducing uncertainty about the duration and scale of future repurchases.
Note: This report is based solely on the company information provided regarding the board authorization and subsequent market reaction. No additional events, figures, or timelines beyond the company’s statement have been included.