Spartan Motors Inc. President and CEO John Sztykiel believes the company is “undervalued” by the financial community, so he convinced the firm’s Board of Directors to authorize the repurchase of up to 500,000 shares of Spartan’s stock.
The stock repurchases will take place as open-market transactions during the next 12 months.
Currently, Spartan, a supplier of diesel pusher chassis to motorhome manufacturers, fire truck chassis and emergency-rescue vehicles, has around 12.1 million shares outstanding. Consequently, a 500,000 share buy-back represents about 4% of the Nasdaq Stock Market-traded company’s stock.
Spartan stock closed at $9.24 a share Thursday (April 24). Its 52-week high is $15.80 and its 52-week low is $8.16.
“When we look at the long-term strength of our core markets, the operating improvements we made in 2002 and our 2003 strategic initiatives, the board and senior management team believe Spartan Motors common stock is a wise investment,” Sztykiel said.
“We believe our stock remans undervalued despite the record earnings, improved operations and strong cash flow generated in 2002, as well as the prospects for the future,” he added.