ROBINHOOD Markets jumped after the retail brokerage announced a plan to repurchase as much as US$1 billion of its own shares.
The firm expects the buyback programme to kick off in the third quarter and take place over a two to three-year period, it said on Tuesday (May 28) in a filing. Shares in Robinhood jumped as much as 7.4 per cent in late New York trading after the company said its board approved the repurchase plan.
Robinhood outlined the programme as its “business and cash flow have continued to grow”, chief financial officer Jason Warnick said.
Robinhood is seeking to expand its offerings beyond the retail brokerage services and commission-free trading that made the company a household name. Early last year, the Menlo Park, California-based firm announced a retirement product and in March it outlined a plan to roll out a credit card to US consumers as it looks to become a broader financial-services company. BLOOMBERG
