Doordash (NYSE: DASH), the food delivery firm, has authorized a buyback of up to USD400 Million of its Class A common shares, according to a regulatory filing Thursday. The program is meant to offset a part of the dilution linked to employee stock compensation packages.
“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.
Repurchases are possible through open market repurchases or privately negotiated transactions, dependent on market conditions, legal requirements, as well as other important factors.
The American company’s shares have recently reached record lows and have tumbled 55% throughout the year. Additionally, the company’s market cap is currently USD21.60 Billion.