Key Highlights

  • AEYE shares traded up 11.64% to $7.77, versus a prior close of $6.96.
  • The Board authorized repurchases of up to $15 million through October 18, 2027.
  • The authorization is equal to roughly 15% of the $97.67 million market capitalization.
  • AudioEye serves more than 129,000 customers.
  • Third-quarter results are due next week.

Board Authorizes $15 Million Repurchase Through October 2027

AudioEye (NASDAQ:AEYE) shares traded up 11.64% to $7.77 after the company announced that its Board has authorized the repurchase of up to $15 million of common stock, expiring on October 18, 2027. The company plans to fund the program with working capital and cash from operations.

The new program replaces an earlier authorization that was scheduled to expire on January 24, 2027, which was terminated. Purchases may be made in open market or privately negotiated transactions, and the program may be suspended or discontinued at any time.

Tucson-Based Accessibility Provider Highlights Cash Generation

Based in Tucson, Arizona, AudioEye provides a patented, AI-driven software-as-a-service platform that helps businesses make websites and digital content accessible to people with disabilities. It serves more than 129,000 customers, holds 25 U.S. patents and employs 116 people.

Management said it expects to generate meaningful cash over the next year as operating leverage increases, and described share repurchases as one of the highest-impact ways to deliver value to stockholders.

The Authorization Equals About 15% of Market Value

AudioEye has a market capitalization of about $97.67 million, so the full authorization represents roughly 15% of its value. The stock trades at 6.90 times forward earnings, with earnings per share of $0.74. Its 52-week range runs from $5.31 to $16.39.

Third-Quarter Results Next Week Will Frame the Pace of Repurchases

Management said it will report third-quarter results next week and discuss its outlook for the fourth quarter. The program does not obligate AudioEye to buy any set dollar amount or number of shares, so the pace will depend on market conditions and price.