Mobileye Global Stock Is Moving Higher Tuesday: What's Driving The Action?

Mobileye Global Inc MBLY shares are trading higher Tuesday after Volkswagen and the company announced a partnership to upgrade driver assistance systems.

What Happened: German automaker Volkswagen Group announced it is working with Valeo and Mobileye to upgrade the advanced driver assistance systems up to Level 2+, which includes partially automated driving.

The upgrades are expected to be featured in Volkswagen’s upcoming vehicle portfolio based on the MQB platform, which is expected to launch in the next few years. The company said the driver assistance capabilities will improve safety and driving comfort in the company’s high-volume vehicles.

“This cooperation supports us on our road to transformation: by sourcing hardware and software together, we streamline procurement, reduce complexity, and improve efficiency. It also empowers our performance program by enhancing technology while keeping costs competitive, ensuring high-quality solutions for our customers,” said Dirk Große-Loheide, member of Volkswagen’s board of management.

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Is MBLY A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages – like Mobileye‘s page for example – there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Mobileye does not pay a dividend, but obviously has a few ways it can return value to shareholders. Feel free to search Benzinga's dividend calendar for the next company that is due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Mobileye Global will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

MBLY Price Action: Mobileye shares were up 13.4% at $17.30 at the time of publication Tuesday, according to Benzinga Pro.

Photo: courtesy of Mobileye.