Target says it will buy back up to another $5 billion of its shares under a new stock repurchase program. The stock buyback is expected to be completed in the next two to three years.
The retailer’s current $10 billion program is expected to be completed within the next few months.
Share buybacks help a company boost its own share price. By purchasing its own shares, a company reduces the supply of its stock and adds new demand for the shares in the marketplace.
Target also announced it will introduce small Apple shops inside 25 stores.
Target shares rose 1.6 percent Thursday to close at $49.81. Its highest price in the past 52 weeks was $56.44.