- The stock price of Chegg Inc (NYSE: CHGG) increased by over 2% during intraday trading today. This is why.
The stock price of Chegg Inc (NYSE: CHGG) increased by over 2% during intraday trading today. Investors are responding positively to Chegg announcing its board of directors has authorized the increase of its previously announced $1 billion securities repurchase program, up to an aggregate of $2 billion of Chegg’s common stock and/or convertible notes, through open market purchases, block trades and/or in privately negotiated transactions or pursuant to Rule 10b5-1 plans, in compliance with applicable securities laws and other legal requirements.
Along with this increased $1 billion securities repurchase authorization, Chegg has about $65 million remaining from its previously announced $1 billion securities repurchase program. And the timing, volume, and nature of any repurchases will be determined by Chegg’s management, in consultation with the board’s Finance Committee, based on its evaluation of the capital needs of the business, market conditions, and applicable legal requirements, and other factors.
The repurchase program has no expiration date and will continue until otherwise suspended, terminated, or modified at any time for any reason by our board of directors. And Chegg currently expects to fund the repurchase program from its existing cash balance and future cash flows from operations.
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