Instacart (NASDAQ:CART) experienced a notable increase of over 8% in share price intra-day today following the announcement of a new $500 million share repurchase program. This initiative marks the company’s third buyback round since September.
Instacart had already executed buybacks amounting to $1 billion, repurchasing approximately 34 million shares, which represents more than 10% of its outstanding shares.
The company has faced challenges maintaining its initial public offering (IPO) price of $30 since September. Nonetheless, recent stock rating upgrades and a market upturn have contributed to a positive shift. Currently, it is up more than 40% year-to-date.
In March, JPMorgan analysts commented that Instacart’s stock buyback program helps mitigate stock volatility and adds stability, especially now that the IPO lock-up period has ended.
At CWEB, we are always looking to expand our network of strategic investors and partners. If you're interested in exploring investment opportunities or discussing potential partnerships and serious inquiries. Contact: jacque@cweb.com