Dollar Tree Announces $2.5B Share Buyback: Retail Investors Upbeat

Dollar Tree (DLTR) announced on Wednesday that its board of directors had approved a plan to repurchase company shares worth $2.5 billion.

The new authorization includes approximately $450 million remaining from a previously approved buyback. Shares of Dollar Tree rose 2% in extended trading after gaining in all three regular sessions this week.

At $104.75 as of last close, the stock has gained over 38% year-to-date and is currently trading near its 52-week high.

Companies occasionally announce buybacks as a means to deploy excess cash, typically when management identifies an opportunity due to a decline in the stock price or a lack of attractive investment alternatives.

“This refresh in our share repurchase authorization reflects the Board’s confidence in our ability to generate strong, sustainable cash flow over the long term,” CEO Michael Creedon Jr. said in a statement.

On Stocktwits, the retail sentiment for DLTR held in the 'bullish' zone, unchanged from the previous day.

The buyback plan comes amid uneven consumer activity and cost pressures due to President Donald Trump's tariffs.

Dollar Tree, which is raising prices on its products, recently forecast that its second-quarter adjusted profit will be down by as much as 50%. The company kept its annual forecast unchanged during its Q1 report last month.

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