Six weeks after announcing a $20 million stock repurchase plan, Covenant Transportation Group Inc. said Thursday it has temporarily suspended the program “for added flexibility in response to the uncertain impact” from the COVID-19 pandemic.
The Chattanooga-based trucking company said in a statement Thursday it with retain the ability to reinstate the stock repurchase program “as circumstances warrant.” But Covenant, like many businesses facing uncertain future demand as the economy slows due to business shutdowns, is trying to preserve its resources.
CBL Properties Inc. announced Wednesday it has drawn down substantially all of its $280 million available credit line to preserve the company’s liquidity after several of its malls, including Hamilton Place and Northgate in Chattanooga, were ordered closed indefinitely to help limit the spread of the virus.
Covenant announced its stock repurchase program on Feb. 10 to buy back the company’s Class A common stock “from time-to-time based upon market conditions.”
While the overall stock market rose more than 6% in trading Thursday, shares of Covenant Transport fell by nearly 5.1% to $9.88 per share. Covenant’s stock price has dropped by 23.6% since the start of the year.