Robinhood Markets Inc ( HOOD ) shares are trading higher in Tuesday’s after-hours session after the company announced a $1 billion buyback.

What Happened: After the market close on Tuesday, Robinhood said its board of directors authorized a new share repurchase program that will allow the company to repurchase $1 billion worth of its stock.

"As our business and cash flow have continued to grow, we're excited to announce a $1 billion share repurchase program to return value to shareholders," said Jason Warnick, CFO of Robinhood.

Robinhood management said it currently expects to complete the buyback program over a two- to three-year period beginning in the third quarter of 2024. Management also noted that it plans to change the pace of capital deployment depending on Robinhood’s share price.

Robinhood shares are up approximately 18% over the past month. The stock began moving higher after the company reported better-than-expected financial results for the first quarter near the beginning of the month.

"Q2 is off to a strong start with April being our highest month of the year for Net Deposits and Gold Subscriber growth, and we're excited to see strong interest from over 1 million customers in our Robinhood Gold Card." CEO Vlad Tenev said in the earnings release.

Robinhood will be participating in the Deutsche Bank Global Financial Services Conference on Thursday. Warnick is scheduled to present at 1 p.m. ET

HOOD Price Action: Robinhood shares were up 2.30% at $20.94 at the time of publication Tuesday, according to Benzinga Pro.

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