Stock repurchase programs are usually a sign that the board of a company is confident about the future of the company.
Here is the Press Release from Etsy
Etsy, Inc., the global marketplace for unique and creative goods, today announced that its Board of Directors has approved a stock repurchase program that will enable the Company to repurchase up to $100 million of its common stock. The program will help offset the dilutive impact of recent and future employee stock option exercises and restricted stock vesting.
“This repurchase program demonstrates the Board’s confidence in our future and our commitment to delivering value to all of our stakeholders,” said Josh Silverman, Etsy CEO. “Our capital allocation strategy prioritizes deploying our strong balance sheet to fund both internal and external opportunities that will accelerate our long-term growth trajectory.”
Under the stock repurchase program, Etsy may purchase shares of its common stock through various means, including open market transactions, privately negotiated transactions, tender offers or any combination thereof. In addition, open market repurchases of common stock may be made pursuant to trading plans established pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, which would permit common stock to be repurchased at a time that Etsy might otherwise be precluded from doing so under insider trading laws or self-imposed trading restrictions. The number of shares repurchased and the timing of repurchases will depend on a number of factors, including, but not limited to, stock price, trading volume and general market conditions, along with Etsy’s working capital requirements, general business conditions and other factors. The stock repurchase program has no time limit and may be modified, suspended or terminated at any time by the Board of Directors. Repurchases under the stock repurchase program will be funded from Etsy’s existing cash and cash equivalents or future cash flow. As of September 30, 2017, Etsy had cash and cash equivalents of approximately $260.3 million. Etsy had approximately 121,714,269 shares of common stock outstanding as of October 30, 2017.