Ollie’s authorizes new $300 million stock buyback
Ollie’s Bargain Outlet Holdings (NASDAQ: OLLI) has announced a new $300 million share repurchase authorization effective through March 31, 2029. The company can execute the buyback through open market or privately negotiated transactions. Since initiating its first share buyback in 2019, Ollie’s has repurchased approximately 5.5 million shares worth $414 million.
The company maintains a strong financial position with $429 million in cash and short-term investments and no borrowings under its revolving credit facility as of fiscal 2024 end. President and CEO Eric van der Valk emphasized that while accelerated growth remains the primary short-term focus, the company is committed to returning capital to investors while maintaining balance for strategic growth opportunities and working capital needs.
In other recent news, Ollie’s Bargain Outlet has been the focus of several analyst reports and strategic developments. RBC Capital Markets raised its price target for Ollie’s to $133, maintaining an Outperform rating, following the company’s acquisition of 40 additional store leases from Big Lots. This acquisition is expected to bolster Ollie’s store growth and market share. KeyBanc also maintained an Overweight rating with a $125 price target, highlighting the strategic expansion with the acquisition of former Big Lots locations, which is anticipated to drive sales and earnings growth in 2025.
Meanwhile, Piper Sandler reaffirmed an Overweight rating with a $126 target, emphasizing Ollie’s strong positioning amid economic uncertainties and the potential benefits from the Big Lots liquidation. Truist Securities maintained a Buy rating and a $121 price target, expressing optimism about Ollie’s fourth-quarter earnings and store growth prospects. In contrast, Jefferies downgraded Ollie’s from Buy to Hold, lowering the price target to $111 due to concerns about inventory growth outpacing sales and potential challenges in 2025.
Source: INVESTING
