Shares in Instacart (NASDAQ:CART) rose sharply Thursday after the delivery company unveiled a new $500 million share repurchase program, marking its third round of buybacks since September.
The board approved the buyback on June 2, as disclosed in a regulatory filing released on Thursday. Instacart previously completed buybacks worth $1 billion, repurchasing around 34 million shares, which is over 10% of its outstanding shares.
Following the announcement, Instacart's shares surged 6.7% at the market open on Thursday.
Listed under the name Maplebear Inc., Instacart has struggled to stay above its initial public offering (IPO) price of $30 since September. However, recent stock rating upgrades and a market rally have contributed to a positive turnaround.
The stock closed at $30.95 on Wednesday, reflecting a 32% increase this year.
In March, analysts at JPMorgan Chase said that Instacart’s stock buyback program helps “reduce volatility” in its stock and “adds stability” now that the IPO lock-up period has passed.