Thor Industries Inc.’s stock price slipped to a new 52-week low today (March 11) so the company’s Board of Directors announced plans to repurchase up to 1 million shares of the company’s common stock.
“This authorization to purchase our stock demonstrates our continuing commitment to enhance shareholder value and we believe that current market conditions present an attractive investment opportunity,” said Wade F.B. Thompson, chairman.
Currently, there are 28.58 million shares of Thor stock outstanding. The company will repurchase up to 1 million shares “from time to time at the discretion of management.”
Thor’s stock price slipped to $21.71 a share in New York Stock Exchange trading earlier today, a new 52-week low. Thor’s 52-week low had been $21.75 a share.
In late afternoon trading, Thor shares were changing hands for around $22.05 a share.
The 52-week high for Thor stock is $42.78 a share.
Companies repurchase their own shares from investors to reduce the supply and, thus, increase the market price of their stock.
Thor definitely has the cash available to repurchase the 1 million shares. Thompson recently revealed that the company has $75.7 million in cash and no debt. Thor also earned $36.2 million during the six-month period that ended Jan. 31.
Thor is the retail market-share leader in travel trailers and fifth-wheels by a wide margin. The firm builds more RV units than any other manufacturer.
All RV manufacturing companies with publicly traded stock have seen their share prices decline to near 52-week lows in recent weeks. analysts say investors are worried about the economic consequences of a war against Iraq and the impact of high gasoline prices on consumer psychology.