Abacus Global Management (NASDAQ:ABL) said on Friday it has authorized a $20 million share repurchase program, underscoring its confidence in the company’s fundamentals and future performance.
The repurchase program, approved by Abacus’s Board of Directors, will be in effect for up to 18 months.
The company said it may repurchase shares using a variety of methods, including open market transactions and block trades, and expects to fund the buybacks with cash on hand and future free cash flow.
The move follows recent insider buying activity, with executives and employees collectively investing more than $2 million of their own funds to acquire Abacus shares, according to recent Form 4 filings.
“While it is unfortunate that Abacus Global Management has been subject to a short attack, we believe our artificially depressed share price represents an excellent buying opportunity for the company,” said CEO Jay Jackson.
“We believe this is validated by our newly authorized share repurchase program, reflecting our Board’s continued confidence in our business model and strength of our balance sheet.”
Jackson also noted that the company’s returns and valuation are independently audited, aligning with Abacus’s 20-year track record of consistent revenue generation. “We will not allow this distraction to affect our continued growth and our day-to-day operations,” he added.
Abacus emphasized its commitment to protecting shareholder value and said it intends to pursue legal remedies against the parties behind what it described as a false and misleading short attack.
The new repurchase authorization is part of a broader strategy to capitalize on what the company views as a mispricing of its shares, while continuing to build on its long-term growth trajectory in the alternative asset management sector.
Shares of Abacus rose nearly 9% on Friday afternoon to reach just over $6.23 in New York.