Mobileye Global Inc. (MBLY) shares surged 5.32% in pre-market trading following the company's announcement of a new share repurchase program.
The autonomous driving technology company announced that its board has approved a program to repurchase up to $250 million of its Class A common stock. The buyback is intended to partially offset dilution from share-based compensation and shares issued in connection with the Mentee Robotics acquisition.
Investors typically view share repurchase programs positively as they can increase earnings per share and signal management's confidence in the company's financial health and future prospects. Mobileye stated it plans to fund the repurchases from existing cash on hand and future cash flows.