Robinhood has approved a $1.5 billion share buyback program as the company looks to return capital to shareholders and signal confidence in its long-term growth.
In a filing with the US Securities and Exchange Commission, Robinhood said its board authorized the repurchase plan, which will be carried out over the next three years.
Share buyback plan approved
The program includes $1.1 billion in new capacity, along with funds carried over from a previous buyback plan.
Robinhood’s finance chief said the move reflects confidence in the company’s future and its ability to continue delivering new products while creating value for shareholders.
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Credit facility expanded
Robinhood also announced that its unit, Robinhood Securities, has secured a $3.25 billion revolving credit facility with JPMorgan Chase, replacing an earlier $2.65 billion facility.
The agreement includes an option to expand the facility by up to $1.62 billion, bringing the total potential credit line to $4.87 billion.
Stock under pressure despite long-term gains
Robinhood shares fell 4.7% on Tuesday to $69.08, marking their lowest level this year, before recovering slightly in after-hours trading.
The stock has decreased almost 39 percent during the current year and has fallen more than 50 percent from its October high because of general market conditions.
Over the last year Robinhood shares have increased approximately 43 percent because the company expanded into prediction markets and banking services. Analysts predict positive outcomes for the next year because their forecasts show increasing stock value.
