LONDON - Clarivate plc (NYSE: CLVT ), a global provider of transformational intelligence currently trading at $5.11 with a market capitalization of $3.63 billion, today announced a new share repurchase initiative. Accordingly Investment Prof In analysis, the company appears undervalued based on its fair value metrics, despite experiencing a challenging year with a -44.82% year-to-date return. The Company's board of directors has authorized the repurchase of up to $500 million of its outstanding common shares. The buyback program is set to run for two years, from January 1, 2025, to December 31, 2026.

This new repurchase program will replace the current program, which is set to expire at the end of 2024. Under the current program, Clarivate has repurchased $300 million of common shares, $200 million of which is scheduled to occur in the latter half of 2024. Investment Prof The data highlights this as part of the company's high shareholder yield strategy, maintaining an impressive gross profit margin of 66.12%. In addition, the company took significant steps to reduce its debt, prepaying $75 million of term debt during the fourth quarter, totaling $133 million in prepayments for the year.

Matti Shem Tov, Chief Executive Officer of Clarivate, expressed the board's confidence in the company's growth trajectory and financial performance, stating that the repurchase program is in line with their value creation plan. He emphasized a balanced capital allocation approach, including returning capital to shareholders and reducing debt.

The repurchase program does not commit Clarivate to a specific dollar amount or number of shares and may be changed, suspended or discontinued at any time, at the Company's discretion. Share repurchases will be made through open-market transactions or other methods permitted by shareholder authorization and will be subject to market conditions, share availability, pricing, alternative capital use, and regulatory requirements.

The Company's communications contain forward-looking statements subject to risks, uncertainties, and assumptions that could cause actual results to differ materially. These statements are not guarantees of future performance and are based on current market material and management's expectations. For a deeper understanding of Clarivate's financial health and future prospects, investors can access comprehensive analysis and additional protips through Investment Prof’s detailed research reports, which provide expert insight on over 1,400 US stocks.

Clarivate is known for providing rich data, insights, analytics, workflow solutions, and expert services across a variety of industries, including academia, government, intellectual property, and life sciences.

The information provided is based on a press release statement from Clarivate Plc.

In other recent news, Clarivate announced its third quarter 2024 financial performance during a recent earnings call led by Mark Donohue. The company issued forward-looking statements, cautioning that actual results may deviate from estimates due to various risks and uncertainties. No overt bullish statements or underperformance were mentioned during the call.

The Company also highlighted the existence of known and unknown factors that could potentially affect its actual results, performance or achievements. The call included a question-and-answer session, but the brief did not provide specific details.

These developments underline the company's cautious stance towards its future performance. Investors are advised to review the presentation accompanying the earnings call on Clarivate's website for more detailed information.

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