September 19, 2012
CVS Caremark’s (NYSE: CVS ) board of directors approved a $6 billion repurchase plan, applicable to common stock, effective immediately, the company said in a press release today. The pharmacy chain, headquartered in Woonsocket, R.I., announced that the program is expected to go on for several years before the $6 billion reserve is dried up. CVS’ market cap is currently just more than $60 billion.
The plan allows CVS to buy back its stock over the open market and via private agreements, as well as other derivative transactions. The company has said it will outline in further detail its capital allocation plans for 2013 on “Analyst Day” Dec. 13.
CVS shares closed up 0.66% Wednesday, outperforming the S&P 500 by about half a percentage point.
More Expert Advice from The Motley Fool
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock in our brand-new free report: "The Motley Fool's Top Stock for 2013
." I invite you to take a copy, free for a limited time. Just click here
to access the report and find out the name of this under-the-radar company.