Why Did FTAI Stock Gain Over 4.5% After-Hours?

• FTAI expects to fund the share repurchases with cash on its balance sheet.
• The company can buy shares through open-market purchases, block trades and privately negotiated transactions.
• The timing and amount of purchases will depend on FTAI’s share price, market conditions and other factors. 

FTAI Aviation Ltd. (FTAI) shares jumped over 4.5% in Tuesday’s after-hours session after the aviation leasing and aerospace products company announced a new $500-million share repurchase program. The company’s board of directors authorized and approved the program, under which FTAI may repurchase up to $500 million of its outstanding ordinary shares.

At the time of writing, FTAI stock had pared some of the gains and was trading 2.7% higher.

$500M Share Repurchase Program

Under the program, FTAI may repurchase up to $500 million of its outstanding ordinary shares. The company expects to fund the repurchases using cash on its balance sheet.

The program will end on the earlier of the date the repurchases are completed or September 30, 2029, the company said. FTAI may make purchases from time to time at the management’s discretion, depending on market conditions and in accordance with applicable rules and regulations.

The company may repurchase shares on the open market at prevailing market prices, through privately negotiated transactions, block trades and other legally permissible means. The program also allows FTAI to establish Rule 10b5-1 trading plans to repurchase shares at times when it might otherwise be prevented from doing so.

Repurchases Not Guaranteed

The share repurchase program does not obligate FTAI to acquire any particular amount of its outstanding shares. The timing and exact amount of repurchases will depend on factors including the performance of the company’s share price, general market conditions, applicable legal requirements, and other factors, FTAI said.

The company may also suspend, modify, or discontinue the share repurchase program at any time and without notice. 

FTAI Stock: Stocktwits Retail Sentiment

On Stocktwits, retail sentiment for FTAI was ‘bearish,’ unchanged in the past 24 hours, while message volume was ‘high’ at the time of writing.

FTAI shares have gained around 2.6% year-to-date. 

Also See: Palantir Looks Cheap Among AI Software Stocks, UBS Says — Why PLTR Could Have More Room To Run 

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