Groupon shares jump 12.89% as shareholder urges faster buybacks

  • Nick Nemeth urged Groupon's board to accelerate share repurchases and change its cash-management policy.
  • Groupon shares rose 12.89% to $21.54 Monday afternoon, according to Benzinga Pro data.
  • Nemeth also proposed a $120 million operating cash target and an automated Rule 10b5-1 plan.

Groupon shares rose 12.89% to $21.54 Monday afternoon after active shareholder Nick Nemeth publicly urged the board to accelerate share repurchases, maintain a strict $120 million operating cash-balance target and establish an automated Rule 10b5-1 trading plan. The proposals would seek to return excess liquidity to investors, limit unproductive cash holdings and provide sustained, programmatic support for Groupon's equity while reducing its outstanding share float. The demands come as the e-commerce marketplace continues a multi-year turnaround, with buybacks at depressed valuations potentially increasing future earnings per share and signaling confidence in the company's cash-generation capacity.

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