VIOT - Board Of Directors Approve Large Share Buyback

Share buyback programs can be a very powerful tool if the total amount being repurchased by the company is significant when compared to the overall valuation of the company (i.e. it’s market cap). Some people feel that share buybacks by a company are a sign of management not knowing how to properly invest excess cash into the company in order to grow future operations, however sometimes the act itself can spur enough buying pressure to set the company up for continued upside from a trading perspective.

Regardless of which side of the fence you’re on for share buybacks, ( %VIOT ) announced today that its board of directors approved a $10 million %ShareBuyback plan over the next 12 months. Seeing that the company’s current market cap is around $55 million (give or take), naturally shares shot up following the announcement.

Shares got up to $0.8483/share (+14.62%) at the session high. This move comes just one session following the stock hitting a new 52-week low of $0.7021.

Viomi Technology Co Ltd along with its subsidiaries provides %InternetOfThings ( %IoT ) enabled smart home products through its platform. Products offered by the company include 21Face smart refrigerator, Viomi dishwasher, Eyebot smart range hood, VioV smart speaker, smart mirror, smart water purification systems, smart kitchen products and other smart products. It generates revenues mainly from the sales of its IoT products, consumable products, and from our value-added businesses.