VENICE — With its shares trading well off the 52-week high, PGT Innovations Inc. has authorized the repurchase of up to $30 million of its common stock.
The maker of impact-resistant doors and windows — the largest private employer based in Sarasota County — said any stock repurchases will be funded through available cash.
“The repurchases may be made in open market or private transactions from time to time,” the company said in a statement. “The company will base future repurchase decisions, including the timing of any such repurchases, on such factors as PGTI’s stock price, general economic and market conditions, the potential impact on its capital structure, the expected return on competing uses of capital such as strategic acquisitions and capital investments, and other corporate considerations, as determined by management.”
A company may opt to buy back its shares to boost the value of the stock and to improve the financial statements. Companies tend to repurchase shares when they have cash on hand, and the stock market is on an upswing. There is a risk that the stock price could fall after a buyback.
Its stock, traded under the symbol “PGTI” on the New York Stock Exchange, opened Thursday at $15.71. The 52-week high was $26.40 last September, with a low of $13.35 on March 25.
Last September the company sold 7 million shares of stock at $23, raising net proceeds of $153 million.
Institutional investors control 94% of the stock. Investment management company BlackRock Inc. of New York City is the largest with a 15.8% stake.
PGT expects to post adjusted net income of $143 million to $152 million in 2019, which would represent a 13% to 20% increase over 2018. Guidance for net sales is $775 million to $800 million, or 11% to 15% higher.