A longstanding Canadian financial technology company unveiled this month that it bought back nearly half a million company shares in 2023.
Born in Vancouver in 2003, shares in Mogo are down from a Pandemic high of more than $40 to about $2.50 today.
Greg Feller, who serves as President and chief financial officer of the fintech, says Mogo is currently undervalued, so it makes sense to buy back shares.
““We expect to remain active with our buyback programs while our shares do not accurately reflect the underlying value of our business,” Feller said in a statement.
Combined with 600,000 shares purchased in 2022, Mogo has reacquired more than one million shares over the past two calendar years—representing 4.4% of current outstanding shares.
Feller believes that Mogo’s “core business” is undervalued, as well as its forays into alternative fintech, such as crypto.
The firm’s core business includes MogoTrade, which offers commission-free stock trading, and Moka, a wholly-owned subsidiary, which offers Canadians an alternative to mutual funds with a passive investing solution based on a S&P 500 strategy at a fraction of the cost. And through its digital payments subsidiary, Carta Worldwide, Mogo offers a payments platform that powers next-generation card programs for fintech companies in Europe and Canada.
Web3-wise, in 2022 Mogo invested in NFT Trader, a company that operates a secure peer-to-peer OTC trading protocol for non-fungible tokens or NFTs.
And on top of that, Mogo’s sizeable ownership of Coinsquare converted into a 14% stake in WonderFi when the two forces merged in a manoeuvre of Canadian crypto consolidation.
“We focused our team and resources on accelerating the path to profitability, narrowing our product focus and building a more efficient operating platform—one that will allow us to scale Mogo profitably over time while competing as a low-cost provider in our markets,” stated Feller last year. “At the same time, we have our sights on future growth as we emerge from this period.”
Mogo boasts more than two million members and nearly $10B in annualized payments volume.
“Our unique approach is helping Canadians get on a much better path to financial freedom, while also having a positive impact,” Mogo founder David Feller said in November during the company’s Q3 2023 fiscal results. “Our third-quarter results showcased the continued progress we’re making in building a highly efficient and more profitable operating platform at Mogo.”
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