Target will buy back up to $5B in shares

AP News
|
Posted: Jan 12, 2012 8:50 AM
Target will buy back up to $5B in shares

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.