Why Better Choice Stock Is Climbing Higher Today

Better Choice Company Inc. BTTR shares are trading higher Tuesday after the company announced a share repurchase program. 

The Details:

Better Choice's board of directors has authorized a stock repurchase program under which the company can repurchase up to $5 million of the currently outstanding shares of its common stock, until Dec. 31, 2024.

The company reported its fourth-quarter financial results Friday with losses of $6.51 per share and quarterly sales of $5.702 million. 

“In 2023, we realized significant gross margin improvement to 31%, fueled by strategic pricing initiatives and a 3% YOY improvement of input costs – a reflection of operational discipline and unlocking profit through high production supply volumes. Our further continued focus on financial discipline and a path to profitability is reflected in the 29% adjusted EBITDA growth and significant improvement in cash burn during the year," Kent Cunningham, CEO of Better Choice.

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Is BTTR 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 Better Choice‘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. Better Choice 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 14.67%, you'll need to buy a share of Medical Properties Trust by April 19. Once done, you can expect to receive a nominal payout of 15 cents on May 1.

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 Better Choice 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.

BTTR Price Action: According to Benzinga Pro, Better Choice Company shares are up 22.9% at $6.27 at the time of publication Tuesday.

Image: from Pixabay