Chegg
shares were trading sharply higher Wednesday after the educational software provider announced an accelerated share repurchase agreement covering $150 million of the company’s common stock.
Chegg (ticker: CHGG) shares were up 18% to $10.52. The company had a market cap of just over $1 billion as of Tuesday’s closing trade.
“We are excited about the opportunities before us and believe Chegg is in a great position to build the most impactful, AI-enabled, personal learning assistant for learners around the world,” Chegg CEO Dan Rosensweig said in a statement. “This accelerated share repurchase demonstrates our ability to generate strong free cash flow and our continued commitment to enhancing shareholder value.”
Chegg as of Sept. 30 had $261 million in cash and short-term investments, plus another $413 million in long-term investments, or $674 million combined, against $599 million in convertible notes.
The company had previously announced a $2.2 billion securities repurchase program that covered both stock and convertible notes. It has reduced the convertible note position by about $589 million over the last nine months.
With the accelerated repurchase, $3.7 million remains on the securities buyback plan, which it had increased by $200 million in August.
Write to Eric J. Savitz at [email protected]
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