New York-listed gaming supplier AGS has secured board approval to conduct a buyback of up to $50m in common stock over the next two years.
The share repurchase plan follows last Thursday’s 51 per cent fall in AGS’ share price, after the company reported slower overall revenue growth in the second quarter and a decline in revenue from its interactive division.
“This share repurchase program demonstrates our board of directors' confidence in the continued strength and long-term growth prospects of AGS,” said president and chief executive David Lopez.
“We believe that the company's shares are significantly undervalued and that we can implement this program while maintaining ample liquidity to continue investing in R&D and capitalizing on numerous potential growth initiatives ahead of us.”
News of the repurchase plan drove a 10.47 per cent increase in PlayAGS Inc. (NYS:AGS) shares Monday to $10.13 per share.