Ever since publishing its 2011 Q1 results yesterday FXCM’s shares tumbled no less than 30%, dropping from $12 to just a little over$9.
Amid this, FXCM’s board has quickly approved a share buyback allowing the company to buy back up to $30 million worth of its Class A common stock and/or FXCM Holdings, LLC units. Under this program, shares may be repurchased from time to time in open market transactions, in privately negotiated transactions or otherwise.
Under this program, shares may be repurchased from time to time in open market transactions, in privately negotiated transactions or otherwise.
The timing and amount of any shares repurchased will depend upon a variety of factors, including market conditions, share price, capital availability, legal requirements and other factors. FXCM is not obligated to purchase any shares under the repurchase program. The repurchase program does not have an expiration date and repurchases may be commenced or suspended at any time or from time to time without prior notice.
As of March 31, 2011, FXCM Inc. (NYSE: FXCM) had 17,319,000 shares of its Class A common stock issued and outstanding and $202,400,000 in cash and cash equivalents.
“FXCM remains confident that our strategy, global scale and a strong capital position will enable the company to continue to lead the global retail FX marketplace,” said Drew Niv, Chief Executive of FXCM. “Since our inception, we have been focused on shareholder returns, a focus evident in our disciplined approach to acquisitions and practice of paying dividends. The introduction of this share repurchase program gives us another tool for delivering those returns. “