Shares of ContextLogic (NASDAQ:WISH) are soaring higher by over 25% following news that the company’s board approved an up to $50 million share repurchase program.
“We believe the current market does not reflect the long-term value of our shares of common stock and we believe this share repurchase program will support our efforts to unlock the long-term value and opportunity we see ahead,” said CFO and COO Vivian Lu.
The timing and amount of the purchases will be based on several factors, such as market conditions, the price of WISH stock and macroeconomic conditions. The repurchase program will expire on Dec. 31 of this year. ContextLogic added that the program could be suspended, modified or terminated for any reason at any time and that it “does not obligate the Company to purchase any particular number of shares.”
Meanwhile, ContextLogic has confirmed that it will report its first-quarter earnings on May 4. Analysts are forecasting revenue of $119.87 million, which would signify a year-over-year decline of 36.6%. EPS is forecasted to come in at a loss of $4.10 compared to a loss of $2.70 a year ago. For guidance, analysts expect Q2 revenue of $130.52 million and an EPS loss of $4.28. For the whole year, analysts forecast revenue of $540.35 million and an EPS loss of $16.75.
5 Investors Betting Big on WISH Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q4, 168 13F filers disclosed ownership of WISH, a decline of one filer from the previous quarter. Three of these filers own WISH in their top 10 positions. Meanwhile, the institutional put/call ratio sits at 0.3, down from 0.34. That’s equivalent to 53,373 puts and 179,233 calls, implying a bullish options stance. With that in mind, let’s take a look at the top shareholders of ContextLogic:
- Vanguard: 52.82 million shares. Vanguard acquired 10.78 million shares during Q4.
- BlackRock (NYSE:BLK): 43.35 million shares. BlackRock acquired 3.05 million shares during Q4.
- Formation8 Partners Fund: 33.95 million shares. Formation8 sold off 17.08 million shares as of Q4.
- Piotr Szulczewski, founder and former CEO: 26.73 million shares, accurate as of Oct. 28, 2022.
- GGV Capital: 25.73 million shares. GGV sold 10.23 million shares during Q4.
On the date of publication, Eddie Pan did not hold (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.
