MINNEAPOLIS (AP) — Discount chain Target Corp. says it will buy back up to another $5 billion in shares under a new stock repurchase program.
The retailer’s current $10 billion program is expected to be completed within the next few months.
The new $5 billion program is expected to be completed in the next two to three years.
Share buybacks allow a company to invest in itself and create added demand for its shares. That enables a company to increase its stock price if it doesn’t think the stock is trading at a fair value.
Its shares were up 66 cents, or 1.4 percent, to $49.69 in premarket trading Thursday after the disclosure.
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