By Dhirendra Tripathi
Investing.com – Dollar Tree stock (NASDAQ:DLTR) jumped 13% on Wednesday after the company expanded its share buyback program.
With a fresh approval for $1.05 billion, Dollar Tree is now willing to pump in $2.5 billion into buying back its own shares.
The discount retailer also said it would raise prices for some items to $1.25 or even $1.50 in some stores to account for higher costs.
As for the buyback, the aggregate amount includes around $1.45 billion available for repurchases under the board’s previous repurchase authorization approved on March 2, 2021.
Dollar Tree has repurchased shares amounting to $950 million in the ongoing financial year that runs through January.
Its equity base comprises 224.911 million shares and it had a market cap of $19.54 billion as of close Tuesday. At this price ($86.28) and commitment then — the buyback has the potential to reduce the share count by around 13%.
The company said it will buy back shares from time to time in the open market or through privately negotiated transactions. There is no expiration date to the exercise.
Dollar Tree Gains on Raising Buyback Size by $1.05 Billion
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