Gamehaus Stock Soars 67% on $5 Million Share Buyback News
The mobile game publisher's board authorized the repurchase program, signaling strong confidence in the company's valuation.
Shares of Gamehaus Holdings Inc. skyrocketed over 67% on Wednesday after the mobile game publisher announced its Board of Directors has authorized a share repurchase program of up to US$5 million.
The announcement, which sent trading volume surging to more than 260 times its daily average, was interpreted by investors as a strong signal of management's confidence that the company's stock is currently undervalued.
The repurchase program is effective immediately and will run through August 28, 2026. According to the company's press release, the buyback will be funded using its existing cash balance and cash generated from operations. Repurchases can be made through various methods, including open market transactions, privately negotiated deals, or block trades.
"Authorizing this share repurchase program reflects our balanced approach to capital allocation, investing in long-term growth while also returning value to shareholders," stated Feng Xie, the company's founder and chairman. "We have a strong balance sheet, ample cash reserves, and a clear pipeline of opportunities, yet we believe our current share price does not fully reflect the strength of our fundamentals or the long-term growth potential of our business and the gaming industry."
Share buybacks are often viewed favorably by the market as they can increase earnings per share by reducing the number of shares outstanding. The move by Gamehaus suggests its leadership sees investing in its own stock as a compelling use of capital, reinforcing their positive outlook on the firm's future prospects.
Gamehaus Holdings is a technology-focused global mobile game publisher that partners with creative studios to bring mid-core and casual games to a worldwide audience.