Classover Holdings (NASDAQ:KIDZ) shares soared Wednesday following the company’s announcement of a $2 million share repurchase program.

• Classover Holdings stock is surging to new heights today. What’s behind KIDZ gains?

$2 Million Share Repurchase Approved

Classover’s board has approved a share repurchase program under which the company may repurchase up to $2 million of its shares, reflecting board confidence in its long-term growth trajectory.

“Following our recent fiscal milestones, we believe the current market valuation does not fully reflect Classover’s operational progress and the significant opportunities within our digital learning platform,” said Luo Hui, CEO of Classover.

The $2 million share buyback program is part of the company’s ongoing efforts to utilize its capital effectively. The decision to repurchase shares is often perceived as a positive signal by investors, indicating that the company believes its stock is undervalued and that it has sufficient cash reserves to support the buyback.

The stock soared more than 40% after the announcement, according to Benzinga Pro.

Mixed Picture For KIDZ Stock

The technical indicators are revealing interesting dynamics. The stock is currently trading 19.4% above its 20-day simple moving average (SMA) but is 59.7% below its 100-day SMA, suggesting short-term strength while indicating longer-term challenges. Over the past 12 months, shares have decreased by 94.51%, and they are currently positioned closer to their 52-week lows than highs, which raises concerns about the stock’s long-term viability.

The RSI is at 33.79, indicating neutral momentum, while the MACD is above its signal line, suggesting bullish potential. This combination points to a situation where traders might see hidden strength despite the overall decline in the stock’s value.

• Key Resistance: 50 cents

Shares Soar In Regular Trading

KIDZ Price Action: Classover Holdings shares were up 38.92%, trading at 22 cents at the time of publication on Wednesday, according to Benzinga Pro data.

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