Uber Technologies announced on January 6, 2025, that it has entered into a $1.5 billion accelerated share repurchase (ASR) agreement with Bank of America. This ASR is part of the company's previously authorized $7 billion share repurchase program, initially approved in February 2024. Under the agreement, Uber will receive approximately 18.6 million shares, representing about 80% of the expected total repurchase.
Uber's CFO, Prashanth Mahendra-Rajah, stated that the company's stock is 'undervalued,' signaling strong management confidence in its financial prospects. The buyback program aims to return capital to shareholders and is expected to boost the company's free cash flow. This move underscores Uber's commitment to enhancing shareholder value.
The accelerated share repurchase comes as Uber continues to focus on profitable growth and operational efficiencies. Management's public declaration of the stock being undervalued, combined with a substantial buyback, typically sends a positive signal to investors. This financial maneuver is expected to support the stock price and reflect the company's robust financial health.
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