Target's Stock Climbs After Stock Buyback Program Boosted By $5 Billion

Shares of Target Corp. climbed 1.3% in premarket trade Wednesday, after the discount retailer approved a new $5 billion stock buyback program. The company said it will begin purchases under the new program after uses up the $1.2 billion remaining in the $10 billion program, which its expects to do by the end of the fiscal year ending January. Target also said it will pay its regular quarterly dividend of 60 cents a share on Dec. 10 to shareholders of record on Nov. 16. "Today's announcements reinforce Target's longstanding commitment to thoughtfully returning cash to shareholders while continuing to prioritize investing in our business," said Chief Financial Officer Cathy Smith. The stock has lost 5.5% year to date through Tuesday, while the SPDR S&P Retail ETF has slipped 0.2% and the S&P 500 has gained 4.7%.