Why Chegg Stock Jumped 10.2% in December
Shares of Chegg (NYSE: CHGG) jumped 10.2% in December, according to data provided by S&P Global Market Intelligence. The direct-to-student online learning platform announced a large buyback program at the end of November, which may have spurred a recovery in the stock, which has fallen almost 60% in the past three months.
On Nov. 29, Chegg announced it had entered into an accelerated share repurchase agreement worth $300 million, which means that it has agreed to have an investment bank buy back a large chunk of its stock. This is opposed to the standard buyback program, where the company itself buys back and retires shares in the open market.
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Source Fool.com