Is It Time To Review Stock News? VAALCO Energy (NYSE:EGY)

Sarah Gleason

VAALCO Energy (NYSE:EGY) spotted trading -50.00% off 52-week high price. On the other end, the stock has been noted 38.52% away from the low price over the last 52-weeks. The stock changed 7.64% to recent value of $1.69. The stock transacted 422297 shares during most recent day however it has an average volume of 350.85K shares. The company has 55.56M of outstanding shares and 55.42M shares were floated in the market.  

VAALCO Energy (NYSE:EGY) announced that its Board of Directors has authorized a stock repurchase program under which the Company can repurchase up to $10 million of the currently outstanding shares of the Company’s common stock, over a period of 12 months through open market purchases, privately-negotiated transactions, or otherwise in compliance with Rule 10b-18 under the Securities Exchange Act of 1934.

The Board also authorized the Company to establish Rule 10b5-1 trading plans.  Rule 10b5-1 trading plans allow companies to repurchase shares at times when they might otherwise be prevented from doing so by securities laws or because of self-imposed trading blackout periods.  Under any Rule 10b5-1 trading plan, the Company’s third-party broker, subject to Securities and Exchange Commission regulations regarding certain price, market, volume and timing constraints, would have authority to purchase the Company’s common stock in accordance with the terms of the plan.

Cary Bounds, Chief Executive Officer, commented,We are pleased to announce a share repurchase program that allows us to return value to our shareholders.  This action underscores our confidence in the strength of our balance sheet, quality of our assets and our ongoing ability to generate free cash flow.  At recent market price levels, we believe the repurchase program is an excellent opportunity to buy our common shares at a significant discount to their intrinsic value and are an attractive investment.  We can execute this buyback program and also continue forward with our planned 2019-2020 drilling program at Etame due to our strong cash flow from operations and overall financial position.

The actual timing, number and value of shares repurchased under the stock repurchase program will depend on a number of factors, including constraints specified in any Rule 10b5-1 trading plans, price, general business and market conditions, and alternative investment opportunities. The share buyback program does not obligate the Company to acquire any specific number of shares in any period, and may be expanded, extended, modified or discontinued at any time. Payment for shares repurchased under the program will be funded using the Company’s cash on hand. Its earnings per share (EPS) expected to touch remained 52.10% for this year while earning per share for the next 5-years is expected to reach at 2.00%. EGY has a gross margin of 62.80%. 

 According to the most recent quarter its current ratio was 1.4 that represents company’s ability to meet its current financial obligations. The price moved ahead of 9.99% from the mean of 20 days, -12.29% from mean of 50 days SMA and performed -16.92% from mean of 200 days price. Company’s performance for the week was 20.71%, -1.17% for month and YTD performance remained 14.97%.

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