The Turtle Beach Corporation has extended its share repurchase program to $25 million. The gaming accessory maker initially approved a buyback program of $15 million in April 2019. Shares of Turtle Beach closed 2.9% higher on Thursday.
Turtle Beach (HEAR) said that it will continue to repurchase shares over the next two years under the expanded buyback program. The program will expire on April 9, 2023.
The company’s CEO Juergen Stark said, “Our strong position in console gaming headsets, rapid growth in PC accessories, and planned entry into additional new gaming accessory categories give us continued confidence in our ability to grow and generate strong financial results.”
Stark added, “The consistently high levels of free cash flow we have generated in recent years allowed us to eliminate our debt and end 2020 with high levels of cash. This, in turn, allows us to continue executing our proven strategy while remaining committed to investing in profitable growth.” (See Turtle Beach stock analysis on TipRanks)
On March 4, Turtle Beach reported upbeat 4Q results, wherein earnings of $0.93 per share topped analysts’ estimates of $0.78, while revenues of $132.9 million beat the consensus estimate of $131.4 million.
Following the results, Maxim Group analyst Jack Vander Aarde maintained a Buy rating and a price target of $42 (53.1% upside potential). In a note to investors, the analyst said, “We believe HEAR’s data-driven approach to managing the business positions the company well to take additional share of the growing $2.7B+ console headset market (note, HEAR had 46.8% market share in 2020), and successfully expand into the $2.8B+ PC headset and accessories market, as well as the ~$2.3B global microphone market.” Aarde added that the valuation remains compelling.
Overall, the Street has a Strong Buy consensus rating on the stock based on 5 unanimous Buys. The average analyst price target of $40 implies upside potential of about 45.8% to current levels. Shares have skyrocketed by about 339.6% in one year.
On TipRanks’ Smart Score ranking, Turtle Beach gets an 8 out of 10 suggesting that the stock is likely to outperform market expectations.