Trading platform Robinhood has announced plans to repurchase $1.5 billion of its shares, according to a Securities and Exchange Commission filing on Tuesday. The buyback, approved by the company’s board, will be executed over the next three years.
The program includes $1.1 billion in new repurchase capacity, with the remainder carried over from an existing plan.
“Robinhood is a generational company with a massive long-term opportunity,” said Chief Financial Officer Shiv Verma. “This authorization reflects our management team and board’s confidence in our ability to deliver innovative products, create shareholder value, and return capital over time.”
The buyback comes as Robinhood (HOOD) shares have struggled this year amid a broader downturn in both stock and cryptocurrency markets.
In a separate move, Robinhood’s subsidiary, Robinhood Securities, secured a $3.25 billion revolving credit facility with JPMorgan Chase, replacing the previous $2.65 billion facility. The facility can expand by up to $1.62 billion, bringing the total available credit to $4.87 billion.
Robinhood shares fell 4.7% on Tuesday to close at $69.08, their lowest level of the year, before slightly recovering to $70.90 after hours. The stock has declined nearly 39% this year and is down 54.7% from its October all-time high of $152.46, as macroeconomic uncertainty and geopolitical tensions, including the Iran war, weigh on markets.
Despite recent share price struggles, Robinhood’s stock has gained nearly 43% over the past 12 months, fueled by the company’s expansion into new offerings such as prediction markets and banking services.
Analyst sentiment remains strong. According to TipRanks, the 12-month average price forecast for Robinhood stock is $123.85, with 16 Wall Street analysts rating it a “strong buy.”
Robinhood is also pushing forward in crypto and real-world asset tokenization. Its Ethereum layer-2 network, Robinhood Chain, launched on testnet in February, processing 4 million transactions during its first week, according to CEO Vlad Tenev.
The network is designed to support tokenized equities, exchange-traded funds (ETFs), and other traditional financial instruments, with the mainnet expected to go live later this year.
