Arena Group authorizes 3 million share buyback program

The Arena Group Holdings, Inc. (NYSE American: AREN) announced its board of directors authorized a share repurchase program allowing the company to buy back up to 3 million shares of common stock over the next 12 months.

The media company, which operates brands including Men's Journal, Parade, Athlon Sports and TheStreet, will fund the program through operating cash flow. The company may repurchase shares through open-market transactions, privately negotiated transactions, or other methods, including Rule 10b5-1 trading plans.

"Our operational performance continues to improve, and the business is delivering the outcomes we targeted," said Paul Edmondson, chief executive officer. "Yet we believe these improvements have not been fully reflected in our current share price, especially when compared with our peers in the Russell 2000 Index."

According to the company's statement, Arena Group shares currently trade at less than 11 times earnings based on management's previously issued second quarter guidance. The company cited Siblis Research data showing the trailing price-to-earnings ratio of Russell 2000 Index companies exceeds 30 times.

The share repurchase program may be suspended, modified or terminated at any time at the board's discretion. The company operates a technology platform and media portfolio that reaches over 100 million users monthly.

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