Abacus Global Management Announces Share Repurchase Program; Insider Buying

Rhea-AI Summary

Abacus Global Management (NASDAQ: ABL) has announced a new $20 million share repurchase program effective June 5, 2025, extending over 18 months. The announcement comes amid a short attack on the company, with CEO Jay Jackson stating that the current share price is artificially depressed. The company's employees have demonstrated confidence by purchasing over $2 million worth of shares. The repurchase program allows the company to buy shares through various methods including open market transactions and block trades. The timing and value of repurchases will be determined based on factors such as stock price, market conditions, and available liquidity. The program will be funded through cash on hand and future free cash flow. Abacus maintains its 20-year track record of generating positive revenue and plans to pursue legal action against those responsible for the short attack.

Positive

• Board authorized substantial $20 million share repurchase program showing confidence in business model
• Strong insider confidence demonstrated through $2 million in employee share purchases
• Company maintains solid balance sheet with available cash for buyback program
• 20-year track record of generating positive revenue

Negative

• Company facing short attack affecting stock price
• Share price currently artificially depressed according to management
• Legal proceedings against short sellers may create additional costs and distractions

Insights

Financial Analyst

Abacus's $20M buyback and $2M insider purchases signal management confidence amid short-seller pressure, potentially supporting share price.

Abacus Global Management's announcement contains two significant investor-relevant developments: a $20 million share repurchase program and over $2 million in insider buying by employees. Both actions represent a direct vote of confidence from management and the board during what they describe as a "short attack" on the company.

The buyback program, which spans up to 18 months, provides several strategic benefits. First, it creates a price support mechanism that could help stabilize the stock against downward pressure. Second, it signals management's belief that shares are undervalued at current levels. With the flexibility to execute repurchases through various methods (open market, block trades, accelerated repurchases), management has tactical options to optimize the timing and impact of buybacks.

The insider buying activity is particularly noteworthy as it represents employees putting personal capital at risk. This typically demonstrates stronger conviction than corporate buybacks alone, as individuals are committing their own money rather than corporate funds. The $2 million figure suggests meaningful participation across multiple employees rather than token purchases.

While the company references a "short attack" with "artificially depressed share price," they don't provide specific details about the allegations or rebut particular claims beyond general statements about audited returns and a 20-year track record. The defensive tone suggests genuine concern about the short-seller impact, and the company indicates it's pursuing legal remedies against those responsible for the "false and misleading short attack."

The program will be funded through existing cash reserves and future free cash flow, indicating management believes their financial position is strong enough to support capital return while maintaining operational flexibility. This suggests confidence in ongoing cash generation capabilities despite the current challenges.

ORLANDO, Fla., June 06, 2025 (GLOBE NEWSWIRE) -- Abacus Global Management, Inc. (“Abacus” or the “Company”) (NASDAQ: ABL), a leader in the alternative asset management space, today announced that its Board of Directors has authorized a new $20 million share repurchase program, effective June 5, 2025 for over a period of up to 18 months, as well as recent Form 4 and other employee share purchases totaling over $2 million.

"While it is unfortunate that Abacus Global Management has been subject to a short attack, we believe our artificially depressed share price represents an excellent buying opportunity for the Company,” said Jay Jackson, Chief Executive Officer of Abacus Global Management. “We believe this is validated by our newly authorized share repurchase program, reflecting our Board’s continued confidence in our business model and strength of our balance sheet, and also by our employees who have spent over $2 million combined of their own money in recent share purchases. Our returns and valuation are audited, and consistent with a 20-year track record of generating positive revenue. We will not allow this distraction to affect our continued growth and our day-to-day operations.”

During the pendency of the stock repurchase program, the Company may repurchase shares from time to time through various methods, including in open market transactions, block trades, accelerated share repurchases, privately negotiated transactions, derivative transactions or otherwise, certain of which may be made pursuant to a trading plan meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in compliance with applicable state and federal securities laws. The timing, as well as the number and value of shares repurchased under the program, will be determined by the Company at its discretion and will depend on a variety of factors, including our assessment of the intrinsic value of the Company's common stock, the market price of the Company's common stock, general market and economic conditions, available liquidity, compliance with the Company's debt and other agreements, applicable legal requirements, the nature of other investment opportunities available to the Company, and other considerations. The Company is not obligated to purchase any shares under the repurchase program, and the program may be suspended, modified, or discontinued at any time without prior notice. The Company expects to fund the repurchases by using cash on hand and expected free cash flow to be generated in the future.

Abacus is committed to pursuing all available legal remedies against the individuals and entities responsible for orchestrating and disseminating the false and misleading short attack.

Forward-Looking Statements

All statements in this press release (and oral statements made regarding the subjects of this press release) other than historical facts are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and factors that could cause actual results to differ materially from such statements, many of which are outside the control of Abacus. Forward-looking information includes but is not limited to statements regarding: Abacus’s financial and operational outlook; Abacus’s operational and financial strategies, including planned growth initiatives and the benefits thereof, Abacus’s ability to successfully effect those strategies, and the expected results therefrom. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “expect,” ‎‎”intend,” “anticipate,” “goals,” “prospects,” “will,” “would,” “will continue,” “will likely result,” and similar expressions (including the negative versions of such words or expressions).

While Abacus believes that the assumptions concerning future events are reasonable, it cautions that there are inherent difficulties in predicting certain important factors that could impact the future performance or results of its business. The factors that could cause results to differ materially from those indicated by such forward-looking statements include, but are not limited to: the ‎fact that Abacus’s loss reserves are bases on estimates and may be inadequate to cover ‎its actual losses; the failure to properly price Abacus’s insurance policies; the ‎geographic concentration of Abacus’s business; the cyclical nature of Abacus’s industry; the ‎impact of regulation on Abacus’s business; the effects of competition on Abacus’s business; the failure of ‎Abacus’s relationships with independent agencies; the failure to meet Abacus’s investment ‎objectives; the inability to raise capital on favorable terms or at all; the ‎effects of acts of terrorism; and the effectiveness of Abacus’s control environment, including the identification of control deficiencies.

These forward-looking statements are also affected by the risk factors, forward-looking statements and challenges and uncertainties set forth in documents filed by Abacus with ‎the U.S. Securities and Exchange Commission from time to time, including the Annual ‎Report on Form 10-K and Quarterly Reports on Form 10-Q and subsequent ‎periodic reports. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Abacus cautions you not to place undue reliance on the ‎forward-looking statements contained in this press release. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Abacus assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Abacus does not give any assurance that it will achieve its expectations.

About Abacus

Abacus Global Management (NASDAQ: ABL) is a leading financial services company specializing in alternative asset management, data-driven wealth solutions, technology innovations, and institutional services. With a focus on longevity-based assets and personalized financial planning, Abacus leverages proprietary data analytics and decades of industry expertise to deliver innovative solutions that optimize financial outcomes for individuals and institutions worldwide.

Contacts:

Investor Relations

Robert F. Phillips – SVP Investor Relations and Corporate Affairs
rob@abacusgm.com
(321) 290-1198

David Jackson – Director of IR/Capital Markets
david@abacusgm.com
(321) 299-0716

Abacus Global Management Public Relations

press@abacusgm.com

FAQ

What is the size and duration of ABL's share repurchase program?

Abacus Global Management's share repurchase program is $20 million and will run for up to 18 months, effective June 5, 2025.

How much insider buying occurred at Abacus Global Management (ABL)?

Employees of Abacus Global Management have purchased over $2 million worth of shares recently through Form 4 and other employee share purchases.

Why did Abacus Global Management (ABL) announce a buyback program?

The company announced the buyback program in response to what they believe is an artificially depressed share price due to a short attack, demonstrating the board's confidence in their business model and balance sheet strength.

How will ABL fund the share repurchase program?

Abacus Global Management plans to fund the share repurchases using cash on hand and expected future free cash flow.

What methods will ABL use for the share repurchase program?

The company may repurchase shares through various methods including open market transactions, block trades, accelerated share repurchases, and privately negotiated transactions.