On Monday, Brown-Forman Corporation (NYSE:BF.A) announced a new $400 million share repurchase authorization. The program will commence immediately and last until October 1, 2024. The company has the option to buy back Class A and Class B common shares for cash through open market purchases, block transactions, and purchases made in accordance with SEC rule 10b5-1. The Louisville-based company has not obligated itself to repurchase a minimum number of shares of Class A or Class B common stock, and the share repurchase program may be modified, suspended, or terminated at any time without prior notice.
The CEO stated that Brown-Forman is carefully monitoring current market conditions while also remaining confident in the long-term potential of their portfolio of brands. The buyback authorization provides the necessary flexibility to repurchase shares when the market presents the right opportunity. Shares of Brown-Forman (BF.A) are down almost 13% on a year-to-date basis and closed on Monday less than $0.40 from their 52-week low of $57.19, a fact corroborated by InvestingPro data. This comes at a time when the company is trading at a high P/E ratio of 35.56, with a market cap of 27.56B USD, according to InvestingPro metrics.
As per InvestingPro Tips, the company has impressive gross profit margins and yields a high return on invested capital, with gross profit standing at 2523M USD and return on assets at 10.47%. However, it's worth noting that the revenue growth has been slowing down recently, with the latest data showing a growth of 5.58%. For more in-depth analysis and tips, consider checking out InvestingPro's premium services.
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