Food delivery firm DoorDash Inc. authorized a buyback of up to $400 million of its shares, according to a regulatory filing Thursday. The board of directors of DoorDash authorised the repurchase of up to $400 million shares of the company’s Class A common stock, according to the filing.
According to the company’s filing, the move is being made to offset dilution from its employee stock-compensation programme.
“DoorDash’s board of directors expects to assess any future repurchase programs based on the company’s balance sheet, expected free cash flow, and alternative investment opportunities at the time. And any future authorization will be approved and executed consistent with the Company’s capital allocation strategy,” it added.
DoorDash shares have closed at record lows recently and are down 55% year to date. They closed 5.2% higher Thursday at $66.95, and rose less than 0.5% in extended trading, according to MarketWatch.
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