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TJX Resumes Buy Backs Worth $1B – $1.25B, Declares Dividend of $0.26

May 28, 2021 Devina Lohia
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The TJX Companies, Inc. (TJX) announced the resumption of its share repurchase program. Shares of the off-price retailer of apparel and home fashions in the U.S. have jumped 24.3% over the past year.

The company intends to buy back shares worth between $1.0 billion and $1.25 billion during FY2022 (ending January 29). It has approximately $3 billion worth remaining under its existing stock repurchase program.

Additionally, TJX Companies declared a quarterly dividend of $0.26 per share, which is payable on September 2 to shareholders of record as of August 12.

The company stated that it is witnessing similar open-only comp-store sales trends in the second quarter compared to the first quarter. (See TJX stock analysis on TipRanks)

TJX CEO Ernie Herrman said, “The actions we announced today demonstrate our confidence in our business and our outlook for successful growth over the long term. We see many opportunities to capture additional market share in the future, and with our very strong balance sheet and ability to generate cash flow, we are very pleased to again be in a position of significantly investing in our business and returning substantial cash to our shareholders.”

Following the first-quarter results announcement on May 20, Barclays analyst Adrienne Yih maintained a Buy rating and increased the price target from $82 to $87 (29.4% upside potential) on the stock.

Yih believes that TJX has adequate inventory to convert excess demand, and there is “clear desire for the TJX value proposition that is driving customers to their brick and mortar stores over alternative channels.”

Overall, the stock has a Strong Buy consensus rating based on 9 Buys and 1 Hold. The average analyst price target of $80.50 implies 19.7% upside potential from current levels.

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