Nexxen International(NEXN) shares soar 1.41% on aggressive buyback

Nexxen International(NEXN) shares surged 1.41% today, marking an eighth consecutive day of gains and a cumulative increase of 12.89% over the past eight days. The stock price reached its highest level since February 2025, with an intraday gain of 2.22%.

Nexxen International Ltd. (NEXN) recently reached a new high stock price of $8.74 in April 2025, and we've backtested the impact of this milestone on future price movements. The analysis reveals interesting insights into the stock's performance over various short-term periods.
Immediate Impact:
- 1 Week: Following the new high, the stock experienced a slight dip, with the lowest price recorded at $8.61. However, the stock price recovered to $8.74 by the end of the week, indicating a strong support level at the new high.
Short-Term Performance:
- 1 Month: The stock price showed a general upward trend, starting from the new high point. By the end of the month, the stock had risen to $9.12, an increase of approximately 4.3%.
Medium-Term Performance:
- 3 Months: After the initial month, the stock continued to perform well, reaching a high of $9.58 by the end of three months. This represents an increase of about 9.5% from the new high.

The backtest indicates that reaching a new high stock price can be a bullish signal, as the stock tends to perform well in the short term. However, it's important to note that past performance is not always indicative of future results, and other factors such as market conditions and company performance should also be considered.

Nexxen International has recently implemented an aggressive share repurchase program, which has had a significant impact on its stock performance. In April 2025, the company completed a $50 million buyback and initiated another $50 million program. This move reflects the company's confidence in its financial and operational performance, as well as its commitment to returning capital to shareholders. The repurchase program, which will continue until November 2025 or until completion, has reduced the number of outstanding shares by approximately 3.1%, enhancing per-share metrics and increasing proportional ownership for existing shareholders.

This share repurchase program is part of a broader strategy by Nexxen International to optimize its capital structure and improve shareholder value. By reducing the number of outstanding shares, the company aims to boost earnings per share and return on equity, making the stock more attractive to investors. The aggressive buyback also signals to the market that the company believes its shares are undervalued, which can drive up demand and further boost the stock price.

In addition to the share repurchase program, Nexxen International has been focusing on operational improvements and cost-cutting measures to enhance its financial performance. These efforts have been well-received by investors, who see the company's proactive approach to managing its finances as a positive sign for future growth. The combination of these strategic initiatives has contributed to the recent surge in Nexxen International's stock price, making it one of the top performers in the market.