California-based InsWeb Corp., an online insurance marketplace, has received the go-ahead from its board of directors to authorize a program to repurchase up to 1 million shares of common stock during the next six months.
Hussein Enan, CEO for InsWeb, said the company’s management and board of directors felt the current market price for the company’s stock understates the present and long-term value of the company. Enan added that with $46 million in cash and short-term investments as of March 31, company officials are confident that the company can be cash-flow positive with the working capital necessary, while investing in the repurchase of InsWeb stock.
Repurchases will be handled either on the open market, negotiated transactions, or by other means, occasionally, depending on the conditions of the market. The repurchased shares will be looked at as treasury stock and can be used for acquisitions or other general corporate necessities.
Through March 31, InsWeb had 42,326,000 shares of common stock outstanding.
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