Shares of Kroger Co. rose 1.1% in premarket trading Thursday, putting them on track for a fourth-straight gain, after the supermarket operator announced a new $1 billions stock repurchase program.
The company said the new program replaces the current program, which had about $157 million remaining.The new program represents roughly 3% of Kroger's market capitalization of about $32.87 billion as of Wednesday's stock closing price.
"Kroger's share repurchase authorization reflects our board of directors' confidence in the strength of our free cash flow and our ability to deliver consistently strong and attractive total shareholder returns," said Chief Executive Rodney McMullen.
The stock has rallied 40.8% this year, while the S&P 500 advanced 27.6%.
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