Four Seasons Edu (Cayman) Inc ADR (NYSE: FEDU) stock price soared 69.1% after its board authorised a $15 million share repurchase program.
The company, which provides after-school education services, is based in Shanghai, China. The share repurchase program is effective starting today to repurchase its American depositary receipts worth up to $5 million.
Investors cheered the move, evidenced by the push higher and the high volume of shares traded today compared to its average daily traded volume.
At the time of writing, over 4.21 million Four Seasons shares had changed hands compared to the 10-day average daily traded volume of 138,245 shares.
The share repurchases will be made periodically over the next 12 months and could include privately negotiated deals and open market share purchases.
Investors should not confuse the educational services company with the Four Seasons hotel chain, headquartered in Canada and trades on the Toronto Stock Exchange under the FS ticker.
Given the staggered nature of the share purchase, it is safe to say that today’s rally may not be sustained in the coming weeks, given that the company has a whole year to complete the program.
*This is not investment advice.
Four Seasons Edu stock price.
Four Seasons Edu stock soared 69.14% to trade at $0.9833 compared to Wednesday’s closing price of $0.5800.
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