Thermon Group announces share buyback program

Thermon Group Holdings Inc (NYSE: THR), a leader in industrial process heating solutions, said on Friday that its Board of Directors had authorized the buyback of up to $50 million of the company’s outstanding shares of common stock through March 15th 2027.

”Today’s authorization of Thermon’s inaugural Repurchase Program underscores the Board’s confidence in our long-term strategy and growth trajectory, as we continue our transformative journey to becoming the world leader in industrial process heating. Our disciplined capital allocation program is a key pillar of our strategy, and this Repurchase Program is being established to offset dilution as an integral part of that framework,” Bruce Thames, President and Chief Executive Officer, said in a press release.

”The strength of our balance sheet gives us significant optionality to invest organically, inorganically, as evidenced by our recent acquisition of Vapor Power, or through this Repurchase Program. The Repurchase Program will also provide the flexibility to repurchase shares opportunistically. Today’s announcement reflects Thermon’s commitment to effectively deploy capital to create long-term value for our stockholders.”

Stock Performance

The shares of Thermon Group Holdings Inc (THR) closed 5.70% ($1.64) higher at $30.43 in New York on Friday, as they registered gains in five out of the past six market sessions.

The company’s total market cap now stands at $1.026 billion.

The shares of Thermon Group Holdings Inc (THR) went up 62.20% in 2023, compared with a 10.99% gain for the benchmark index, NYSE Composite (NYA).

The company’s shares have retreated 6.57% so far this year.

Analyst stock price forecast and recommendation

According to TipRanks, the 1 surveyed investment analyst offering 12-month price target for Thermon Group’s stock had rated the latter as “Buy”. The median price target on the stock stands at $36.00, which translates into an 18.30% upside compared to the closing price on Friday.

The high point of the analyst forecast range stands at $36.00.