Market News

MultiPlan Announces $250M Share Buyback Program; Shares Climb 8.2%

Shares of healthcare cost management solutions provider MultiPlan Corporation (MPLN) jumped 8.2% on Friday after the company approved a $250-million share repurchase program of its Class A common stock.

The repurchase program is effective immediately and expected to conclude before it expires on December 31, 2022. The company looks to fund the repurchase through cash in hand and cash from operations. As of June 30, 2021, MPLN had cash and cash equivalents of $148 million.

Notably, the share repurchase program represents about 7% of the company’s roughly 656 million shares of Class A common stock outstanding, as of June 30, 2021, and 20% of the prevailing free float of approximately 225 million shares.

The CEO of MultiPlan, Mark Tabak, said, “This repurchase program reflects the strength of MultiPlan’s business and cash flow, as well as the confidence of our senior management team and Board of Directors’ expectations for continued strong performance. Given our confidence, we believe this program represents an attractive opportunity to buy our common shares at a discount to their intrinsic value and is consistent with MultiPlan’s history of using disciplined capital allocation to create long-term value for its investors.” (See MultiPlan stock chart on TipRanks)

On August 21, Tigress Financial analyst Ivan Feinseth initiated a Buy rating on the stock with a price target of $9 (47.5% upside potential). Shares of the company have declined 47.1% over the past year. The stock has a Moderate Buy consensus based on 1 Buy.

Related News:
J.M. Smucker Exceeds Q1 Expectations; Shares Fall on Lower Guidance
Gap Shares Jump 7% on Solid Q2 Results and Raised Guidance
Domo Q2 Results Surpass Estimates; Shares Decline 8.4%

Tired of arriving late to the Big Returns Party?​
Most investors don’t have major gainers like TSLA or NVDA on their radar from the start.
The profusion of opinions on social media and financial blogs makes it impossible to distinguish between real growth potential and pure hype.
​​For the past decade, we have developed and perfected technology designed to help private investors, just like you, find the best opportunities, with the greatest upside potential, in any financial climate.​
Learn More