TLDR
- Webull announced a $100 million share repurchase program on Tuesday
- The buyback will run over the next 12 months using cash on hand and future cash flow
- BULL stock was up 9.13% in premarket, following a 4.32% gain the day before
- Despite the recent rally, the stock is still down over 70% in the past 12 months
- Wall Street consensus is Strong Buy, with an average price target of $11.67
Webull (BULL) announced a $100 million share buyback program on Tuesday, sending the stock higher in premarket trading.
Webull Corporation Class A Ordinary Shares, BULL
The digital investment platform said its board authorized the repurchase of up to $100 million worth of Class A ordinary shares over the next 12 months. The company plans to fund the program with existing cash and future cash flow.
Webull reported levered free cash flow of $561.5 million over the last twelve months and a current ratio of 1.26, giving it room to carry out the buyback without straining its balance sheet.
The repurchases can be made through open market transactions, privately negotiated deals, block trades, or other legally permissible methods. The company is not required to buy back any set number of shares and can pause or cancel the program at any time.
CFO H.C. Wang said the program “reflects our balance sheet strength and our ability to return capital to shareholders while maintaining flexibility to continue investing in our growth priorities.”
Group President and U.S. CEO Anthony Denier added that the move reflects “continued focus on optimizing our capital structure and delivering long-term value to shareholders.”
Stock Performance
BULL stock jumped 9.13% in premarket trading on Tuesday, building on a 4.32% gain from Monday. The stock was trading at $7.01 at the time of the announcement.
Even with those back-to-back gains, BULL is still down 9.78% year-to-date and has dropped more than 70% over the past 12 months. The stock has recovered around 20% in the past week alone.
Trading volume on Tuesday came in at roughly 3.6 million shares, well below the three-month daily average of about 11.66 million.
Financials and Analyst Views
Webull posted a loss of $1.23 per share over the last twelve months. However, analysts are forecasting a return to profitability this year, with expected earnings of $0.19 per share.
Revenue grew 45% to $564.3 million, with a gross profit margin of 77%. Those numbers suggest the underlying business is expanding, even as the stock has struggled.
Wall Street is broadly positive on BULL. The consensus rating is Strong Buy, based on three Buy ratings over the past three months. The average price target sits at $11.67, which would represent a gain of more than 66% from current levels.
Rosenblatt Securities has a Buy rating and a $12.00 price target. Compass Point recently started coverage with a Buy rating and a $9.00 price target.
On the regulatory front, Webull said it will support the removal of Pattern Day Trader rules, which would let investors make unlimited day trades without keeping a $25,000 minimum balance. The change aligns with new FINRA regulations and has been viewed positively by analysts.
The company operates in 14 markets across North America, Asia Pacific, Europe, Africa, and Latin America, with more than 26 million registered users globally.
Webull’s Q4 net income came in at $14.6 million, down slightly from $14.9 million in the same period last year.
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