Why Novo Integrated Sciences Stock Is Up

Novo Integrated Sciences, Inc. NVOS shares are trading higher Friday after the company announced its board is conducting a review to determine whether it is appropriate to increase the company's stock repurchase program.

The Details:

Novo announced the board of directors is conducting a strategic review to determine whether it is appropriate to increase the maximum amount that can be repurchased pursuant to the stock repurchase program based on the amount, if any, of excess funds that may be generated from the recently disclosed program to monetize a Standby Letter of Credit intended to complete the Ophir Collection acquisition. 

Pending receipt of funds from the unsecured 15-year $70 million promissory note with RC Consulting Consortium Group, LLC in favor of SCP Tourbillion Monaco for a lump sum debt funding of $57 million less fees and expenses, the amount and timing of any shares repurchased under the Stock Repurchase Program will be determined at the discretion of management.

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Novo shares are racing higher on heavy trading volume following the announcement. According to data from Benzinga Pro, more than 213 million shares have already been traded in the session, compared to the stock’s 100-day average of 1.027 million shares.

Is NVOS 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 Novo Integrated Sciences‘ 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. Novo Integrated Sciences 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 15.37%, you'll need to buy a share of ARMOUR Residential REIT by June 17, 2024. Once done, you can expect to receive a nominal payout of $0.24 on June 27, 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 Novo Integrated Sciences 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.

NVOS Price Action: According to Benzinga Pro, Novo Integrated Sciences shares are up 133% at $1.05 at the time of publication Friday.

Image: Pete Linforth from Pixabay