NU Online News Service, June 20, 12:45 p.m. – InsWeb Corp., Sacramento, Calif., a Web-based insurance broker, says its board of directors has authorized a program to repurchase up to 1 million shares of common stock over the next six months.
“Management and the board of directors of InsWeb believe that the current market price for the company’s stock understates the current and long-term value of the company,” says Hussein Enan, chief executive officer of InsWeb. “We therefore believe that this repurchase program is a good investment and is in the best interests of our shareholders.”
InsWeb had $46 million in cash and short-term investments as of March 31, and executives there are confident that the company can become “cash-flow positive” with the working capital available while repurchasing the stock, Enzan says.
As of March 31, InsWeb had 42,326,000 shares of common stock outstanding.