Trading app Robinhood unveils maiden stock buyback plan of $1 billion
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Trading app Robinhood Markets launched its first-ever share buyback plan on Tuesday, saying it would repurchase $1 billion worth of stocks as it looks to grow beyond its startup phase. The company, best known for being the go-to app for retail traders, has been rolling out a series of new features to cater to its customers' demand for sophisticated products. The buyback underscores that Robinhood is adopting a similar approach to win over investors who might be looking for signs of maturity before backing the 11-year-old company. Buybacks are typically associated with older companies. The repurchases would be executed over a two to three year period starting from the third quarter, Robinhood said. Shares rose 4.3% to $21.34 after the bell and were set to open at their highest since Dec. 2021 if current gains hold. Companies often buy back stock when they believe they are undervalued. Robinhood's shares have gained nearly 61% so ...