Shares of the XpresSpa Group, Inc. (XSPA) stock rallied in the intraday trading after it announced the stock repurchase program. XSPA stock price saw a push of 4.21% to reach $1.85 a share at the time of this writing. The trading volume as of now was 2,170,315. XpresSpa Group, Inc is operating as a health and wellness service company that provides spa services at airports. Let’s take a close look at recent events of this stock.

Stock Repurchase Program:

XSPA’s board of directors has given consent for the stock repurchase program of up to 15 million shares of its outstanding common stock. There is no specific option for share repurchase as it can be on the open market or through the privately negotiated transaction. The factor including securities law limitations, cash flow requirements, and market condition will determine the timing and amount of future repurchases. Repurchases will continue until the acquisition of all the authorized shares or until repurchase authorization expires. The authorization will expire on September 15, 2022. The board of directors may suspend, extend or modify the authorization at any time.

Financial View of XSPA stock:

• In the second quarter ended June 30, 2021, XSPA stock generated $9.1 million in revenue as compared to $143,000 in Q2,2020.
• XpresSpa stock recorded $7.7 million from the cost of sales in the second quarter of 2021. This compares to $978,000 in the same tenure of the previous year.
• Gross profit improved to $1.4 million in the recently reported quarter from $835,00 in the prior year same quarter. The high revenue resulted in increased gross profit
• XpresSpa stock spent $4.6 million in general and administrative expenses in the recently reported quarter. These expenses in the same tenure as the previous year were $3.4 million.
• XSPA stock suffered a net loss attributable to common shareholders of $4.5 million. This represents a significant decrease as compared to $58.1 million net loss attributable to common shareholders in the prior-year same period.
• Loss from operations declined from $58.5 million in Q2,2020 to $4.7 million in Q2, 2021.

Balance Sheet of XSPA stock:

By the end of June 2021, XpresSpa had $102.5 million in cash and cash equivalents, excluding restricted cash. Total current assets and total current liabilities were $107.6 million and $18.6 million respectively.

Wrap Up:

Investors are responding positively to the announcement of the stock repurchase program by XSPA stock. The stock gained 55.40% year to date and its average price target is $3.50.