Sundial Growers (NASDAQ:SNDL) stock is on the rise Friday following a couple of bits of positive news from the marijuana company.
Starting off we have to discuss a new share repurchase program announced by the company. This allows it to repurchase C$100 million worth of its SNDL stock from time to time.
Sundial Growers will make these share repurchases when management deems fit. It will do so through “open market purchases, privately negotiated transactions, block trades, derivatives, accelerated or other structured share repurchase programs, or other means.”
An extra restriction on the agreement is that the company can only purchase a maximum of 102.8 million shares of SNDL stock. That represents roughly 5% of the company’s total outstanding shares. The share repurchase program starts next Friday and will last for one year.
It’s also worth mentioning that Sundial Growers reported earnings for Q3 2021 after-markets closed on Thursday. That includes a net income of $11.3 million. That’s a positive switch compared to the company’s net loss of $71.4 million from the same period of the year prior.
Another factor that investors need to consider is SNDL stock’s meme status. The stock is a favorite of traders over on Reddit with shares frequently the subject of discussion on the WallStreetBets subreddit.
Today’s news is driving heavy trading of SNDL stock. As of this writing, more than 407 million shares of the stock have changed hands. That’s a massive surge compared to its daily average trading volume of 86.3 million shares.
SNDL stock was up 15.7% as of Friday morning and is up 51.3% since the start of the year.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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