Stock Groups

Dollar Tree Gains on Raising Buyback Size by $1.05 Billion By Investing.com

by Mike Robinson

[ad_1]

© Reuters.

By Dhirendra Tripathi

Investing.com – Dollar Tree stock (NASDAQ:) jumped 13% on Wednesday after the company expanded its share buyback program.

Dollar Tree now has approval to buy back shares for $2.5billion.

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 purchased shares in excess of $950 millions during the current financial year, which runs from January to March.

As of Tuesday close, its equity base consisted of 224.911,000,000 shares. It had a market capital of $19.54 trillion. With the current price of $86.28 and the promise to buy back shares, it has the potential for a reduction in share count of around 13%.  

According to the company, it plans to buy back shares in private transactions or on the open market. The exercise has no expiration.

The stock count falls, so a buyback increases earnings per share. The buyback increases shareholder returns. A buyback of shares is usually done when the company doesn’t have any other uses for its cash or investors are looking to get their money back.

 

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. CFDs include futures, stocks, indexes and Forex. Prices are provided not by the exchanges. They are instead provided by market makers. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.



[ad_2]