Birkenstock Holding Plc (NYSE:BIRK) is one of the 10 Stocks With Stunning Double-Digit Gains.
Birkenstock climbed by 32.7 percent week-on-week, after executing a $250-million accelerated share buyback program, amid the company’s belief that it remains undervalued
In a report earlier in the week, Birkenstock Holding Plc (NYSE:BIRK) said that it entered into an accelerated share repurchase agreement with Goldman Sachs, under which the latter would initially deliver 6 million shares, or 80 percent of the total. The New York Stock Exchange building. Photo by Дмитрий Трепольский on Pexels The final number of shares has yet to be determined, but based on the set purchase price of $33.21 apiece, Birkenstock Holding plc (NYSE:BIRK) is set to receive over 7.5 million shares from the transaction.
The listed shoemaker said that it intends to fund the buyback through a combination of cash on hand and a revolving credit facility. It expects to close the transaction before June 30, 2026. “Short-term market dynamics have resulted in what we believe is a strong disconnect between our share price and the strength of our underlying fundamentals,” Birkenstock Holding plc (NYSE:BIRK) CEO Oliver Reichert said. ”We believe deploying our substantial cash position toward repurchasing our own shares represents the most attractive use of capital in the current environment. Given the volatile environment of the capital markets, we will continue evaluating market conditions to take advantage of further opportunities for share repurchases in the future,” he noted.