DocGo Announces Repurchases of Common Stock and Adoption of 10b5-1 Trading Plan for Share Repurchase Program
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DocGo Inc.'s recent share repurchase announcement is a strategic financial decision that can have several implications for the company's valuation and investor sentiment. Repurchasing shares at an average price of $3.88 indicates the company's belief that its stock is undervalued. This action can lead to an increase in earnings per share (EPS) by reducing the number of shares outstanding, potentially making the stock more attractive to investors. Furthermore, the authorization to purchase up to $36 million in stock, with an additional $10 million under a 10b5-1 trading plan, reflects a significant capital allocation that could signal confidence in the company's future financial performance.
However, investors should consider the opportunity cost of this capital deployment. The funds used for repurchasing shares could alternatively be invested in growth initiatives or used to pay down debt, if any. It's essential to evaluate the company's balance sheet and liquidity position to understand whether the repurchase program is a prudent use of capital. In the context of DocGo's sector, mobile health services, the investment into share repurchases should be weighed against the need for constant innovation and market expansion, which are critical for long-term success in this industry.
The mobile health services industry is rapidly expanding, driven by technological advancements and an increasing demand for accessible healthcare solutions. Within this context, DocGo's share repurchase program could be interpreted as a move to align its market capitalization with the company's growth prospects and operational successes, as indicated by their statement on strong full-year 2023 results. The repurchase program may also serve as a message to the market that the management believes the stock is undervalued relative to its performance and future potential.
It's also worth noting that the use of a 10b5-1 trading plan allows DocGo to continue repurchasing shares during periods when insiders are typically restricted from trading due to possession of material non-public information. This plan provides a pre-determined structure for repurchases, which can help avoid potential concerns about insider trading and ensure compliance with SEC regulations. The impact of such repurchases on the stock's liquidity and volatility should be monitored, as significant buybacks can affect the trading dynamics of the shares.
DocGo's engagement in a 10b5-1 trading plan as part of its share repurchase program is a compliance measure that adheres to the Securities Exchange Act of 1934. The 10b5-1 trading plan is designed to provide a legal defense against insider trading accusations by allowing corporate insiders to establish a predetermined plan to buy or sell company stock. The plan must be entered into when the insider does not have material non-public information and subsequent trades are executed according to the plan, irrespective of any material non-public information the insider might acquire after adopting the plan.
Investors should be aware that while the plan facilitates continued repurchases during blackout periods, it does not guarantee the volume or timing of repurchases, as market conditions and price fluctuations can influence the execution of the plan. The transparency and adherence to SEC rules in conducting share repurchases can reinforce investor confidence in the company's governance practices.
DocGo also announced that it has entered a 10b5-1 trading plan to facilitate repurchases of up to an additional
“As we continue to deliver exceptional patient care, we remain committed to delivering profitable growth and creating shareholder value,” said Lee Bienstock, CEO of DocGo. “As we previously announced, our full year 2023 results were our strongest to date, and we continue to believe that share repurchases are value enhancing uses of our capital.”
Repurchases under DocGo’s 10b5-1 trading plan will be administered through an independent broker and may be made in the open market at prevailing market prices. All repurchases under the plan will be implemented in accordance with the applicable requirements of Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended.
There can be no assurances as to the actual number or aggregate value of shares that will be repurchased by DocGo pursuant to the Repurchase Program, including the 10b5-1 trading plan.
About DocGo
DocGo is leading the proactive healthcare revolution with an innovative care delivery platform that includes mobile health services, remote patient monitoring and ambulance services. DocGo disrupts the traditional four-wall healthcare system by providing high quality, highly affordable care to patients where and when they need it. DocGo’s proprietary technology and dedicated field staff of certified health professionals elevate the quality of patient care and drive business efficiencies for facilities, hospital networks and health insurance providers. With Mobile Health, DocGo empowers the full promise and potential of telehealth by facilitating healthcare treatment, in tandem with a remote physician, in the comfort of a patient's home or workplace. Together with DocGo's integrated Ambulnz medical transport services, DocGo is bridging the gap between physical and virtual care. For more information, please visit www.docgo.com.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, the plans, strategies, outcomes, and prospects, both business and financial, of the Company, including the Repurchase Program. These statements are based on the beliefs and assumptions of the Company’s management. Although the Company believes that its plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, the Company cannot assure you that it will achieve or realize these plans, intentions, outcomes, results or expectations. Accordingly, you should not place undue reliance on such statements. All statements other than statements of historical fact are forward-looking, including, but not limited, to statements regarding the Company’s future actions, business strategies or models, plans, goals, future events, future revenues, future margins, current and future revenue guidance, future growth or performance, financing needs, business trends, results of operations, objectives and intentions with respect to future operations, services and products, and new and existing contracts or partnerships. In some cases, these statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “might,” “will,” “should,” “could,” “can,” “would,” “design,” “potential,” “seeks,” “plans,” “scheduled,” “anticipates,” “intends” or the negative of these terms or similar expressions.
Forward-looking statements are inherently subject to substantial risks, uncertainties and assumptions, many of which are beyond the Company’s control, and which may cause the Company’s actual results or outcomes, or the timing of results or outcomes, to differ materially from those contained in the Company’s forward-looking statements, including, but not limited to the following: the Company’s ability to successfully implement its business strategy; the Company’s reliance on and ability to maintain its contractual relationships with its healthcare provider partners and clients; the Company’s ability to compete effectively in a highly competitive industry; the Company’s ability to maintain existing contracts; the Company’s reliance on government contracts; the Company’s ability to effectively manage its growth; the Company’s financial performance and future prospects; the Company’s ability to deliver on its business strategies or models, plans and goals; the Company’s ability to expand geographically; the Company’s ability to deliver on its margin normalization initiative; the Company’s ability to maintain and roll out its backlog; the Company’s M&A activity; the Company’s ability to retain its workforce and management personnel and successfully manage leadership transitions; the Company’s ability to collect on customer receivables; the Company’s ability to maintain its cash position; risks associated with the Company’s Repurchase Program; expected impacts of macroeconomic factors, including inflationary pressures, general economic slowdown or a recession, rising interest rates, foreign exchange rate volatility, changes in monetary pressure, financial institution instability or the prospect of a shutdown of the
Moreover, the Company operates in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for the Company to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results or outcomes could differ materially from those described in the forward-looking statements.
The forward-looking statements made in this press release are based on events or circumstances as of the date on which the statements are made. The Company undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as and to the extent required by law. The Company’s forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.
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Media:
DocGo
Michael Padovano
5W Public Relations
docgo@5wpr.com
pr@docgo.com
DocGo Investors:
Mike Cole
DocGo
949-444-1341
mike.cole@docgo.com
ir@docgo.com
Steve Halper
LifeSci Advisors
646-876-6455
shalper@lifesciadvisors.com
ir@docgo.com
Source: DocGo Inc.
FAQ
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