Online brokerage Robinhood Markets (HOOD) has announced its first ever stock buyback, saying that it plans to repurchase $1 billion U.S. of its own shares over the next three years.
Analysts at Barclays PLC (BCS) have calculated that Robinhood is likely to buyback 49 million shares of its Class A common stock, or 6% of shares outstanding.
The share repurchases are scheduled to begin in this year’s third quarter. Robinhood has not set an expiration date for its inaugural stock buyback program.
Robinhood Markets went public in 2021 and is best known for attracting retail investors to its trading platform through ultra-low or no fees.
The company has been diversifying and expanding beyond its core business of online trading. Earlier this year, Robinhood announced that it would begin issuing credit cards.
Robinhood also reported record earnings for this year’s first quarter, propelled by increased trading of stocks and cryptocurrencies.
In the last 12 months, the stock of Robinhood Markets has increased 130% to trade at $20.47 U.S. per share.
