Robinhood Markets Inc (NASDAQ:HOOD) shares rose to a three-year high in pre-market trades as the trading app underlined its growing confidence with a US$1 billion share buyback.
Having been on a rollercoaster in the eleven years since it floated, commentators suggested the buyback is a sign it wants its growing maturity to be acknowledged.
Earnings have exceeded market expectations for eight successive quarters, according to Reuters.
Shares will be bought in a two-to-three year period starting from the third quarter of this year, Robinhood said.
Shares in the app group have risen over 60% this year but are still well below their peak in 2021 when it was a major beneficiary of the fevered trading during the meme stock frenzy and initial crypto boom.
Other signs of its maturity include a premium credit card launched in March and where the waiting list now tops one million.
A retirement account was launched in late 2022 with trading futures and index options to be added later this year.