Shares of Intuitive Surgical (NASDAQ: ISRG) were jumping 6.6% higher as of 11:17 a.m. ET on Tuesday. The gain came after the robotic surgical-systems maker announced plans to repurchase $1 billion of its shares.

Intuitive Surgical stated in a filing to the U.S. Securities and Exchange Commission (SEC) that it has entered into an accelerated stock-buyback agreement with Citibank, a subsidiary of Citigroup. The company will initially receive around 3.6 million shares.

Investors usually like stock buybacks because the transactions underscore a company's confidence in its prospects. They also can create buying pressure that lifts the share price.

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Source Fool.com