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Skillz (NYSE:SKLZ) stock is taking off on Monday after the mobile gaming company announced plans for a share repurchase program.
The company notes that its Board of Directors has approved a share repurchase program for $65 million worth of its Class A stock. That’s a sign of strength from the mobile game company and is boosting investor morale today.
In addition to that, Skillz says it intends to repurchase up to $65 million of its outstanding 10.25% Senior Secured Notes due 2026. The company seeking to retire some of its debt is another positive boost to the morale of SKZL stockholders on Monday.
Skillz notes that it will use cash and cash equivalents to fund its share repurchase and debt retirement plans. The company also notes that the share repurchase offer will last for 12 months. The plans also don’t require Skillz to acquire any shares or notes and it can end them at any time.
How This Affects SKLZ Stock
These announcements from Skillz are sending shares higher as investors buy up its shares. That has it seeing heavy trading with more than 3.9 million shares of the stock changing hands as of this writing. This is already well above the company’s daily average trading volume of about 445,000 shares.
With all of this activity, shares of SKLZ stock are up 19.5% as of Monday morning. However, the shares are still down 18% since the start of the year.
Investors looking for more of the most recent stock market news will want to keep reading!
We’ve got all of the biggest stock market stories worth reading about on Monday! A few examples include what’s moving shares of Timber Pharmaceuticals (NYSEMKT:TMBR), Nikola (NASDAQ:NKLA), and Mullen Automotive (NASDAQ:MULN) stock today. Investors can learn all about these matters by checking out the links below!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.