Back to top

Analyst Blog

Recently, the board of directors at Dollar Tree, Inc. (DLTR - Analyst Report) announced a new share repurchase program that authorizes the company to buy back shares worth $2 billion. This authorization overrides the previous buyback program announced in Oct 2011.

Dollar Tree also concluded a private placement deal worth $750 million worth of Senior Notes with the institutional investors. JPMorgan Securities LLC, a subsidiary of JPMorgan Chase & Co. (JPM - Analyst Report) and Wells Fargo Securities, LLC, a wing of Wells Fargo & Company (WFC - Analyst Report) acted as the joint placement agents. The notes include $300 million of 4.03% Senior Notes maturing in Sep 2020, $350 million of 4.63% Senior Notes maturing in Sep 2023 and $100 million of 4.78% Senior Notes maturing in Sep 2025. 

Further, Dollar Tree entered into a deal with JPMorgan Chase Bank, N.A – a subsidiary of JPMorgan – to buy back $1 billion of shares under a variable maturity accelerated share repurchase program. Half of the shares to be bought back under this program are collared and the other half are uncollared.

The $1 billion will be financed through the proceeds of the above-mentioned placement deal and $250 million in cash. As of Aug 3, 2013, the company had $250 million outstanding under its revolving credit facility and $413.7 million as cash available.

Dollar Tree has been meticulously returning capital to its shareholders. We believe that the latest capital activities are part of the company’s strategy to maximize shareholder value.

Currently, Dollar Tree carries a Zacks Rank #3 (Hold).  Another stock that is worth considering is Dollar General Corporation (DG - Analyst Report), which carries a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
QIHOO 360 T… QIHU 95.04 +4.95%
PILGRIMS PR… PPC 31.52 +3.72%
WILLIAMS(C)… CWEI 138.97 +3.55%
FLAMEL TECH… FLML 14.02 +3.16%
CALLON PETE… CPE 11.50 +3.14%