The board of directors of US neobroker Robinhood Markets, Inc. (NASDAQ:HOOD) has announced that it has authorized a $1 billion share repurchase program, demonstrating management and the board’s confidence in Robinhood’s financial strength and future growth prospects.

Shares of Robinhood reacted quite positively to the news, with NASDAQ:HOOD trading up by 5% in aftermarket trading on Tuesday. The current aftermarket price of $21.45 would set a new 52 week high for Robinhood stock.

Robinhood has a market cap of about $18 billion, so $1 billion is a fairly sizeable chunk of the company’s outstanding shares.

“As our business and cash flow have continued to grow, we’re excited to announce a $1 billion share repurchase program to return value to shareholders,” said Jason Warnick, Chief Financial Officer of Robinhood.

Robinhood management currently expects to execute this program over a two to three year period starting in Q3 2024, depending on general business and market conditions, and alternative investment opportunities. Management also plans to vary the pace of capital deployment depending on share price.