Utah Medical Products Says it's Prepared to Spend Nearly $49 Million to Repurchase ~20% of its Shares
EXECUTIVE SUMMARY
✅ As per its "Tender Offer" announcement filed with the U.S. Securities and Exchange Commission, Utah Medical Products says it is ready to pay $75 per share for as many as 650,000 of its publicly traded shares, potentially spending $48.75 million to retire roughly one-fifth of its outstanding stock.
✅ If the T.O. proceeds forward and is exercised in full, the company would spend over 55% of its $87.5 million of cash and investments on hand as of June 30th, a figure over 26% more than the company’s entire $38.5 million of 2025 revenue.
✅ Shareholders who do not sell shares through such a T.O. would own a larger percentage of UTMD stock, this includes such large shareholders as CEO Kevin Cornwell and others.
22 September 2026 — MIDVALE, Utah — Utah Medical Products (NASDAQ:UTMD) has announced it is prepared to spend as much as $48.75 million to repurchase roughly one-fifth of its outstanding shares, potentially using more than half of the medical-device company’s cash and investments to do so.
The Midvale, Utah-based company filed with the U.S. Securities and Exchange Commission a news release announcing it intends to offer shareholders $75 per share for as many as 650,000 shares through an issuer self-tender expected to begin on or about today, 22 September 2026.
If/when this self-issued T.O. proceeds forward, it would reduce Utah Medical’s outstanding share count by approximately 20.4%, which arguably makes this considerably more than a routine stock-buyback announcement.
Contextually, for its second quarter of 2026 (ended June 30), Utah Medical reported $87.53 million of cash and investments at the time, along with just $2.54 million of total liabilities and no debt.
In other words, spending the full $48.75 million for its announced yet not formal T.O. would consume 55.7% of that balance.
Contextually, the proposed repurchase is also larger than Utah Medical’s entire $38.52 million of 2025 revenue and more than four times its $11.29 million of net income last year.
Obviously, A Major Capital-Allocation Decision
As outlined in its most recent quarterly report, Utah Medical stated that excess cash should be considered for investments through
🟢 Developing new technologies or processes, or
🟢 Acquisitions capable of increasing revenue and earnings.
However, when better strategic uses are unavailable, management had stated previously that it would return cash to its shareholders through dividends and "open market" share repurchases when it believes its shares are undervalued.
The disclosed Tender Offer plans change that recent philosophy and do so on a much larger scale.
In comparison, as noted in its Q2 2026 filing, Utah Medical spent approximately $6.7 million repurchasing shares during the first six months of 2025 versus just $206,000 during the first half of 2026.
Instead, Utah Medical could now deploy $48.75 million in a single transaction.
Kevin Cornwell, Utah Medical’s President and CEO since 1992, made this statement in the company's announcement about its proposed Tender Offer:
“UTMD remains a healthy business with excess cash capable of providing the funds needed to repurchase shares. The Company wishes to make an investment that by anti-dilution will substantially enhance the value of shares held by its continuing stockholders confident in UTMD’s future, by giving investors who are tired of the low share price an opportunity to sell shares at a premium over the current price.”
Who Owns More Afterward?
Clearly, the self-issued T.O. could also significantly alter Utah Medical’s ownership percentages.
Case in point, CEO/President Cornwell owned nearly 190,000 shares (~5.9% of the company), according to the company's 2026 Proxy Statement.
If he sold none of his shares while the company completed the proposed full repurchase amount, his ownership would rise mathematically to about 7.4%.
The same effect would apply to other shareholders who do not participate, such as
Brandes Investment Partners, Utah Medical's largest disclosed institutional shareholder, which owns/controls over 475,000 shares as of 30 June 2026, ~14.9% of Utah Medical’s shares outstanding.
If Brandes tenders none of its holding while 650,000 other shares were retired, its ownership stake in Utah Medical would rise to approximately 18.8%.
Those calculations illustrate the potential effect of the transaction, not what either shareholder intends to do.
That said, Utah Medical has not yet disclosed whether Cornwell, other insiders, or major institutional shareholders would sell should the T.O. become official
That should become clearer if/when the company formally launches the offer and files its definitive Schedule TO and Offer to Purchase, which it has not done prior to this writeup being published.
Regardless, the T.O. period is expected to expire 7 October 2026 unless extended.
{AUTHOR'S NOTE: The company’s board has approved the transaction but has not made a recommendation about whether shareholders should participate or not if/when the T.O. becomes official.}
Will the Tender Offer Become Official?
In the release, the company said the $75 offer price represented a 17% premium to UTMD’s average daily closing price during the previous 12 months and a 21% premium to its two-year average.
As shown in the image below (captured this morning from Yahoo!Finance), Utah Medical's lowest closing price per share over the past year occurred on 20 November 2025 when it closed at $53.80/share.
The Friday before the company disclosed its plans for its self-directed Tender Offer (11 September 2026), the Utah Medical share price closed at $69.71, representing a nearly 30% rise since the latter part of November 2025.
However, as of 11:15am ET this morning, the UTMD share price hit $75.04/share providing two insights:
🟣 If you had bought UTMD at the closing price back on 20 November 2025 and held until today, you'd be sitting on a gain of over 39% ... in 10 months. Also,
🟣 With UTMD shares now priced above $75/share, it appears to me that some traders believe Utah Medical will boost its Tender Offer price point.
But whether that is true or not is yet to be determined.
For now, we wait to see if/when Utah Medical formally files a Schedule TO-I with the SEC to make its Tender Offer official.
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