Chegg Stock Is Moving Higher Wednesday: What's Going On?

Chegg Inc CHGG shares are trading higher Wednesday. The company announced a $150 million buyback. 

What Happened: Chegg has entered into an accelerated share repurchase agreement to repurchase $150 million of its common stock.

Under the agreement, Chegg will make an initial payment of $150 million to Morgan Stanley Bank, National Association, and receive approximately 13.5 million shares of its common stock by Nov. 15. The final settlement is expected to take place by the second quarter of 2024. 

"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," said Dan Rosensweig, president and CEO of Chegg. 

"This accelerated share repurchase demonstrates our ability to generate strong free cash flow and our continued commitment to enhancing shareholder value."

The accelerated share repurchase agreement will be effectuated pursuant to Chegg's previously announced $2.2 billion buyback. The company had $153.7 million remaining on its previously announced buyback as of Oct. 31.

From Last Month: Chegg Q3 Earnings: Revenue Beat, EPS Beat, Subscribers Down 8%, Company Rolls Out AI-Powered Experience

CHGG Price Action: Chegg shares were up 5.62% at $9.39 at the time of publication, according to Benzinga Pro.

Photo: Michal Jarmoluk from Pixabay.