Why Heartcore Enterprises (HTCR) stock surged over 170%?

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 Why Heartcore Enterprises (HTCR) stock surged over 170%?
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Highlights:
  • Heartcore Enterprises, Inc. (NASDAQ: HTCR) offers enterprise customers software-as-a-service (SaaS) solutions and data analytics services. 
  • It announced a US$3.5-million share repurchase program of its outstanding common stocks.
  • The company brought its Nasdaq IPO in February this year.

The Heartcore Enterprises, Inc. (NASDAQ: HTCR) stock surged a whopping 176.48% on Wednesday after announcing a US$3.5-million share repurchase program of its outstanding common stocks.

The company said that its board of directors had approved the buyback plan. The stock traded at US$2.8201 at 11:34 am ET. Heartcore’s current market capitalization is US$51.68 million.

It has not set any specific date to complete the program. Heartcore said it would buy back the stocks from time to time, depending on its cash flows and general market conditions.

The company could buy the shares from the open market or through privately negotiated deals following the federal securities laws. 

The Tokyo-based company offers software-as-a-service (SaaS) solutions and data analytics services to enterprise customers. It was founded in 2009 and currently employs some 45 people. It brought its Nasdaq IPO in February this year.

The stock plummeted around 79% since the public offer. Heartcore’s customer experience management platform (CXM Platform) provides companies with marketing, sales, and content management systems to enrich customers’ experience and engagement.

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The company expects strong sales in 2022, driven by its core CMS and digital transformation businesses and the recently added “Go IPO” consulting service. 

Sumitaka Yamamoto, the CEO of the company, said in the press release: “The authorization of this share repurchase program reflects our leadership’s confidence in the trajectory of the organization and our ability to generate long-term shareholder value.” 

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Why Heartcore Enterprises (HTCR) surged over 170%?

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Financials:

The stock traded in the range of US$6.19 to US$0.94 in the last 52 weeks.

For the first quarter ended March 31, 2022, the company reported revenue of US$2.28 million compared to US$2.11 million in the previous year.

Its net loss increased to US$1.58 million or US$0.09 per diluted share compared to US$0.183 million or US$0.01 per diluted share in Q1 the previous year. 

The company reported cash and cash equivalents of US$13.9 million as of March 31, 2022, compared to US$3.14 million in the previous quarter as of December 31, 2021. 

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Bottom line:

The NASDAQ 100 Technology Sector Index lost around 25% YTD. The tech sector has been facing strong headwinds from rising interest rates and other negative market forces. However, investors should carefully analyze the stock’s fundamentals before investing in them. 

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