Fitell (FTEL) stock rocketed higher again on Tuesday after the gym and fitness equipment retailer’s shares already underwent a massive rally on Monday. This extreme movement is tied to a $3 million share repurchase program that was announced yesterday.
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Under the terms of this program, Fitell may repurchase up to $3 million worth of FTEL stock over the next 24 months. It can make these stock buybacks through market purchases, block trades, or other means. The company’s management team will take into account share price, market conditions, regulatory requirements, capital position, and liquidity when considering repurchases. The repurchases will be made with cash on hand and expected cash flow.
Sam Lu, CEO of Fitell, said, “Following our FY25 results, we believe the current market valuation does not fully reflect Fitell’s operational progress and opportunities across our fitness operations and 2F Robotics. We believe our balance sheet has strengthened and that now is an appropriate time to begin returning value to shareholders.”
Fitell Stock Movement Shows Investor Confidence Today
Fitell stock was up 45.83% on Tuesday, following a huge 41.18% rally on Monday. Even so, the stock remained down 99.14% year-to-date and 99.74% over the past 12 months.
The stock repurchase announcement has sparked heavy trading of FTEL stock. This had some 25 million shares change hands this morning, following over 82 million shares being traded yesterday. For the record, the company’s three-month daily average trading volume is about 2.38 million units.
Is Fitell Stock a Buy, Sell, or Hold?
Turning to Wall Street, analyst coverage for Fitell is lacking. Fortunately, TipRanks’ AI analyst Spark has it covered. Spark rates FTEL stock a Neutral (42) with no price target. It cites “significant financial performance challenges, including declining revenues and profitability, negative returns, and cash flow issues” as reasons for this stance.
