Shares of Cemtrex Inc. (NASDAQ: CETX) saw a handy gain in Wednesday’s session immediately following the announcement of a new share repurchase plan. The company announced that its board of directors approved a new repurchase authorization for up to a million of its outstanding shares over the next 12 months.

Although this does not seem like much, the company only has a market cap of roughly $31 million, and the average daily volume of shares is about 250,000.

Under this new stock repurchase authorization, the company may repurchase shares in open-market purchases in line with all applicable securities laws and regulations. The extent to which Cemtrex repurchases its shares, and the timing of such repurchases, is dependent on a few different factors, including market conditions, regulatory requirements and other corporate considerations, as determined by Cemtrex’s management team. The repurchase program may be suspended or discontinued at any time.

Saagar Govil, chairman and chief executive of Cemtrex, commented:

This share repurchase plan, the first in the Company’s operating history, demonstrates our commitment to providing value to our shareholders and reflects our confidence in our business and growth prospects, as we continue to expand both organically and through strategic transactions such as the recent Periscope acquisition.

So far in 2016, Cemtrex has outperformed the broad markets, with the stock up over 30%.

The stock was trading up nearly 17% at $3.59 on Wednesday afternoon, with a consensus analyst price target of $3.80 and a post-IPO trading range of $1.56 to $5.19.

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