CETX stock has soared over 120% in the past two trading sessions after Cemtrex Inc (NASDAQ:CETX) announced that it had received a new $700,000 contract in the Advanced Technology segment. Moreover, on Thursday, the company’s board approved a new share repurchase authorization for common stock.
Cemtrex Receives $700,000 Contract for Municipal Buildings
The company focuses on several sectors such as smart technology, digital tech solutions, industrial solutions, intelligent security solutions, and virtual and augmented realities. The new order Cemtrex received was for several municipal buildings that include correctional facilities in the Southern United States. The company received orders for video surveillance equipment that includes hardware and software. These are products that Cemtrex markets through its Advanced Technology segment, and it expects to fulfill the order in this quarter.
A day earlier, when the company released its financial results for the year ending September 30, 2019, it indicated that the Advanced Technologies segment has continued to grow exceptionally. The company reported revenue of around $19.27 million for the segment, which is a 992% growth in the year. However, YoY revenue from its industrial services segment dropped by 4% to around $19.99 million. Overall, the company reported revenue of approximately $39.27 million for fiscal 2019.
CETX stock is now down 9% at $2.28.
Cemtrex Board Approves Share Repurchase Program
After rallying 55% on Wednesday, CETX stock soared another 38% on Thursday following the approval of a new share repurchase program. On Thursday, the company’s Board of Directors approved a new share repurchase authorization for Cemtrex’s common shares and series 1 preferred stock. Under the authorization, the company will repurchase around 2 million of its outstanding stock of each class. The repurchase program will run for over three years.
Under the share repurchase program, Cemtrex will repurchase the shares through open market purchases, as well as through block purchases and privately-negotiated transactions or otherwise, according to the relevant federal securities laws that include the Rule 10b-18 of the Exchange Act.
Cemtrex cannot predict if or when it will repurchase any of the common shares and the series 1 preferred stock because this depends on several factors. These include general business and market conditions, price, and alternative investment opportunities.
CETX stock is down over 60% over the past year.
Featured image: DepositPhotos © kapustin_igor