Opko Health, Inc. (NASDAQ:OPK) shares are trading higher Thursday after the company announced a $100 million share repurchase program.

The Details:

Opko said it expects to fund the repurchase program from existing cash and cash equivalents, and future cash flows. The company had approximately 697 million shares outstanding as of June 30, 2024, and the new authorization represents approximately 10.1% of shares outstanding at the current stock price.

"We believe OPKO's shares are significantly undervalued and offer an attractive investment opportunity. Buying back shares supports our conviction in OPKO's strategy as we continue to advance our pipeline in the clinic and streamline our diagnostic segment on a path to profitability," said Phillip Frost, M.D., CEO of Opko Health.

Additionally, Opko announced a $250 million non-dilutive note purchase agreement with HealthCare Royalty (HCRx) after the market close Wednesday. Opko said the purchase agreement is secured by its profit share payments from Pfizer received pursuant to its license agreement relating to NGENLA, a once-weekly treatment to treat pediatric growth hormone deficiency.

According to data from Benzinga Pro, Opko Health shares are moving on heavy volume and are trading above the stock's 50-day moving average of $1.31.

Should I Sell My OPK Stock?

When deciding to hold on to or sell a stock, investors should consider their time horizon, unrealized gains and total return.

Shares of Opko Health have decreased by 27.39% in the past year. An investor who bought shares of Opko Health at the beginning of the year would take a loss of $0.03 per share if they sold it today. The stock has risen 24.15% over the past month, meaning an investor who bought shares on June 1 would see a capital gain of $0.12.

Opko Health shares have an all-time high of $5.15, representing 234.55% upside from current levels.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. Opko Health stock currently has an RSI of 84.21, indicating overbought conditions.

For access to advanced charting and analysis tools and stock data, check out Benzinga PRO. Try it for free.

OPK Price Action: According to Benzinga Pro, Opko Health shares are up 3.87% at $1.47 at the time of publication Thursday.

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