Chegg Boosts Share Buyback By $200M
Portfolio Pulse from Shivani Kumaresan
Chegg Inc's board of directors has authorized an increase of $200 million as part of its securities repurchase program. This is in addition to the $89 million remaining from its previously announced $2 billion securities repurchase program. The company plans to fund the repurchase program from its existing cash balance and future cash flows from operations. As of June 30, 2023, Chegg held $808 million in cash and equivalents. CHGG shares are trading higher by 3.15% at $9.83 in premarket on Thursday.
August 17, 2023 | 10:54 am
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Chegg Inc has increased its securities repurchase program by $200 million, with $89 million remaining from its previous $2 billion program. The company's shares are trading higher by 3.15% in premarket trading.
The announcement of an increased share buyback program is generally seen as a positive signal by the market, as it indicates that the company believes its shares are undervalued. This can lead to an increase in the stock price, as seen by the 3.15% increase in premarket trading. The company's ability to fund the repurchase from its existing cash balance and future cash flows also indicates a strong financial position, which can further boost investor confidence.
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