Why GAN Limited Stock Jumped as Much as 10% in Morning Trading Today
Shares of GAN Limited (NASDAQ: GAN), which provides software services to the casino sector, rose a quick 10% in morning trading on Dec. 1. There were two pieces of news out of the company that probably helped spur that advance, but one is likely to be more important than the other from a business perspective.
After the close of trading on Nov. 30, GAN announced that it was initiating a $5 million share repurchase program. Investors generally like to see stock buybacks, since reducing the share count allows the company to spread its earning over fewer shares. That has the effect of boosting earnings, though it does little to actually build the business. This announcement, in addition to the broader market rally after a big down day for the indexes on Nov. 30, was probably what got investors excited.
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Source Fool.com
