Wix.com Ltd. (WIX) shares are soaring 7.87% during intraday trading on Thursday following the company's announcement of a major capital return initiative.
The website builder has launched a modified Dutch auction tender offer to repurchase up to $1.75 billion of its ordinary shares. Shareholders can tender their shares at prices between $80.00 and $92.00 per share in the offer, which is scheduled to expire in late March unless extended.
Such large-scale share repurchase programs are typically viewed positively by investors as they signal management confidence, reduce share count, and return capital to shareholders, often leading to increased demand for the stock.
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