Chegg, Inc. ( CHGG ) shares traded higher on Monday after the company announced a repurchase agreement for its 0% convertible senior notes due 2026. Here’s what you need to know.

What To Know: Chegg ( CHGG ) has entered into private agreements with certain noteholders to repurchase approximately $116.6 million of its outstanding 0% convertible senior notes due 2026 for a cash price of $96.2 million. The repurchase transactions were entered into as part of Chegg's ( CHGG ) previously announced securities repurchase program.

The note repurchases are expected to close on Dec. 3. Following closing, $127.9 million aggregate principal amount of the notes will remain outstanding, while $207.5 million will remain available for repurchases under the program.

The move reduces the company's outstanding debt, which appears to have contributed to Monday’s positive market reaction. Chegg ( CHGG ) provides learning support services through its platform, offering AI-powered academic assistance and access to subject matter experts.

Chegg ( CHGG ) reported better-than-expected financial results for the third quarter earlier this month. Multiple analysts lowered price targets following the report, ranging from $1.50 to $3 per share.

CHGG Price Action: Chegg ( CHGG ) shares closed Monday up 12.2% at $2.26, according to Benzinga Pro.

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