Ever-Glory International Group, Inc. (EVK) stock announced a stock repurchase program after which the stock is soaring in pre-market. EVK stock price saw a surge of 74.78% to reach $3.94 a share at the time of this writing. The stock went high by 1.35% at the previous closing. Let’s deep dive to explore more of it.

EVK Stock’s Repurchase Program:

According to the stock’s repurchase program, EVK stock may buy up to $5 million of its outstanding shares of the common stock on or before 31st December 2021. Under this program, EVK stock can buy shares from time to time. Moreover, it can buy shares through different means like open market transactions and privately negotiated transactions. Considering different factors, Ever Glory management would decide when to buy shares of the stock of how much value. The key factors for making a decision are market and economic conditions and stock’s trading price. Regulatory requirements and other corporate considerations will also affect the buying decision. There is no fixed date of discontinuity of the repurchase program as it can be suspended at any time.

Financial View of the EVK stock:

• In the first quarter of 2021, EVK stock reported $70.8 million in sales,21.4% higher as compared to Q1 of 2020. The wholesale business increased 4.2% while retail business showed a 32.0%
• The gross profit of EVK stock surged 39.9% to $22.4 million in the Q1 of 2021, compared to Q1 of 2020. The total gross margin for Q1 2021 increased 31.7% over the year.
• Retail business showed a 42.5% improvement in gross profit in the first quarter of 2021 over the year. The gross margin for retail business was 37.6% up over the year.
• EVK stock reported $4.6 million gross profit for the wholesale business which is 30.5% higher than Q1 od 2020. The gross margin increased from 15.7% in the first quarter of 2020 to 19.6% in the first quarter of 2021.
• Selling expenses were 15.4% higher than the same quarter of last year. General and administrative increased by 35.7% over the year.
• Ever glory stock suffered a $1.0 million loss from its operations. Net loss was $1.2 million, lesser than the $2.7 million net loss for the first quarter of 2020.

Balance Sheet of EVK stock:

Ever-Glory reported $78.1 million of cash and cash equivalents by the end of March 2021. At the end of December 2020, it had $81.9 million cash and cash equivalents.

Wrap Up:

Investors are responding positively to the stock repurchase program which Ever-Glory stock announced recently. The first-quarter results were exceptional and now upcoming second-quarter results will further clarify the position of this stock.