Share repurchase program suspended
Target pulled the plug on its share repurchase program, which is too bad for shareholders, considering the huge pullback in the company’s stock price. Through the end of the third quarter, Target had acquired approximately 93.3 million shares at an average price of $51.70 and spent roughly $4.8 billion.
As recently as mid-September, Target shares traded above $55, but the company’s stock along with the rest of the market tumbled throughout late September and October. Cfo Doug Scovanner said the decision to suspend repurchase activity was done out of a desire to avoid doing anything that might harm the company’s credit rating.
“It is our judgment if we continued to execute our share repurchase plan at the pace we once envisioned that would constitute doing something that is within our control that might well have an adverse impact on our short term credit ratings,” Scovanner said. “It seems only intelligent to pause and be very careful until we see some improvement in our underlying business results to be able to once again fire up the share repurchase program.”
Torng named chief marketer at Movie Gallery
WILSONVILLE, Ore. Movie Gallery announced that Cliff Torng has been appointed evp and chief marketing officer of the company. He will be responsible for all aspects of Movie Gallery’s corporate marketing operations, including brand marketing, customer intelligence and communications.
Torng has more than twenty years of experience in marketing and advertising, specializing in global retail branding and marketing. He most recently served as director of marketing for the Jordan brand at Nike.
Price Chopper partners with EatingWell
SCHENECTADY, N.Y. Price Chopper Supermarkets has teamed up with EatingWell Media Group to give its consumers recipes that are both tasty and nutritious and inform them of the latest health news to help them make better eating decisions.
The program falls under Price Chopper’s Healthy U initiative, which provides current information on nutrition and diet.