On Thursday, the Private Bancorp of America (OTCMKTS:PBAM) stock was trading within a range but at the same time it is necessary for investors to keep in mind that the company did make a major announcement yesterday. Private Bancorp announced yesterday that its Board of Directors had decided to commission a stock repurchase initiative for the second time.
On Thursday, PBAM stock moved up 0.52% to $30.90 with more than 11k shares, compared to its average volume of 4.3K shares. The stock moved within a range of $30.02 – 31.00 after opening trade at $30.80.
Private Bancorp of America, Inc. Announces Second Stock Repurchase Program
In addition to that, the board also provided the authorisation for the company to get into a stock repurchase agreement deal with a broker-dealer. More often than not, the news of a stock repurchase programme can often lead to a wave of optimism with regards to a stock but nothing of the sort happened with the Private Bancorp stock.
As per the authorisation from the board, the company could pick up as many as 60,000 shares of the Private Bancorp stock. However, in these context, it is necessary to note that the shares are also going to be repurchased by way of privately brokered deals. In addition to that, repurchase from the open market is also going to take place. In total, the board has permitted spending no more than $2.2 million for this initiative.
PBAM stock is trading below the 20-Day and 50-Day Moving averages of $30.10 and $30.45 respectively. Moreover, the stock is trading below the 200-Day moving average of $27.07.