Why Is Upstart -- a High-Growth Fintech -- Already Repurchasing Shares?
Upstart (NASDAQ: UPST), the lender using artificial intelligence in its decision-making on loans, delivered strong results for the fourth quarter of 2021, sending its stock price soaring last week. But the company also delighted shareholders with the announcement that it had authorized a $400 million share-repurchase program.
The share buyback news came as a bit of a surprise because Upstart only went public at the end of 2020 and has been in growth mode ever since. Usually, companies in growth mode do not repurchase shares. They are usually too focused on investing in the business to grow more users and capture market share.
Let's take a look at why Upstart chose to repurchase shares and what it might mean for investors.
Source Fool.com
