Birkenstock Holding Plc BIRK shares are trading lower Monday after the company announced the launch of a secondary public offering of up to 14 million ordinary shares. 

The Details

Birkenstock said the selling shareholder intends to grant the underwriters a 30-day option to purchase up to 2.1 million additional ordinary shares. Following the completion of the proposed offering and without giving effect to the underwriters’ option to purchase additional shares, the selling shareholder will hold approximately 137,543,181 ordinary shares, or 73.2% of the ordinary shares outstanding.

“Supported by the positive outlook and strong performance of our business, the intended Secondary Offering is an opportunity for us to further broaden our investor base and to increase the liquidity of our stock. As with our IPO, we will look to partner with investors that have a long-term perspective, understand our unique investment case and contribute a sustainable value to the Company," said Oliver Reichert, CEO of Birkenstock.  

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Is BIRK A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages — like Birkenstock Holding‘s page, for example — there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Birkenstock Holding does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 19.77%, you'll need to buy a share of Dividend Growth Split by June 28, 2024. Once done, you can expect to receive a nominal payout of $0.10 on July 15, 2024.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Birkenstock Holding will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

BIRK Price Action: According to Benzinga Pro, Birkenstock shares ended Monday's regular session 2.75% lower at $59.78 and are down another 3.90% after-hours at $57.45 at the time of publication.

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