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(Reuters) – Trading app Robinhood (NASDAQ:) Markets said on Tuesday it would repurchase shares worth up to $1 billion over a two to three year period starting from the third quarter.
The company has been rolling out new products such as a credit card for subscribers to its premium tier in its push to be a full-fledged financial services company.
It has also benefited from the positive sentiment among retail customers, who are dipping back into equities trading on hopes of a soft landing for the economy.
Companies often buy back shares when they believe they are undervalued, or when they see limited options to fuel financial growth by reinvesting their profits.
Its shares rose nearly 6% after the bell and have gained 61% so far this year.
