Uber’s stock price surged after the company announced a $1.5 billion share repurchase agreement with Bank of America and the launch of an accelerated buyback program.
On Monday, Uber revealed that the $1.5 billion repurchase is expected to cover more than 18.5 million shares or roughly 80% of the stock targeted for buyback under the accelerated plan. The remaining shares are expected to be repurchased by the end of the first quarter of 2025.
This initiative is part of Uber’s $7 billion stock repurchase program, announced in February. It is the company’s first-ever buyback effort.
Uber’s Chief Financial Officer, Prashanth Mahendra-Rajah, noted that the company is entering 2025 with strong momentum. He stated that the company aims to consistently and significantly expand its free cash flow, allowing it to invest in its growth and return capital to its shareholders.
He added that the company believes its stock is undervalued relative to its business fundamentals. As a result, it is accelerating its stock repurchases under the current authorization.
In its October earnings report, Uber disclosed that $697 million had been allocated for stock buybacks during the first three quarters of fiscal year 2024. Following the recent announcement, Uber’s stock price rose by 3.62%, closing at $66.93.
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