Shares of Intuitive Surgical Inc. ISRG, +6.65% surged 4.9% in premarket trading Tuesday, after the surgical systems and instruments for invasive surgeries announced a $1 billion accelerated stock repurchase agreement (ASR). That represents 1.3% of the companies market capitalization of $77.84 billion as of Monday’s close. Under terms of the ASR agreement, which was made with Citigroup Inc.’s C, +1.86% Citibank N.A., Intuitive Surgical will make an initial payment of $1 billion and receive an initial delivery of 3.6 million shares; the exact number of shares that will be repurchased will be based on the average daily volume-weighed average price (VWAP) of the stock during the repurchase period. Based on Monday’s stock closing price of $220.27, $1 billion would repurchase about 4.54 million shares. Intuitive Surgical’s stock has edged up 0.5% over the past three months through Monday, while the S&P 500 SPX, +1.30% has lost 4.3%.
