Shares of Mullen Automotive (NASDAQ:MULN), a nascent player in the electric vehicle space, soared after announcing plans for a stock repurchase initiative. Under this initiative, the company has the freedom to procure up to $25 million of its own shares on the open market or through privately arranged deals until December 31, 2023. For reference, MULN stock has a market cap of $137 million, which means the buyback equates to more than an 18% yield.
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It’s crucial to mention that Mullen isn’t obligated to buy back any shares, and the plan can be modified or canceled by the company’s board at any point before its scheduled end. Mullen’s CEO and chairman, David Michery, regards the repurchase initiative as a prime opportunity to utilize the company’s capital while providing a return to their shareholders.
A look at the past five trading days for MULN stock highlights the level of impact today’s news had on it. Indeed, shares jumped over 27% at the time of writing. As a result, investors are now up 101.21% during this timeframe.