U.K.-based retailing giant Frasers Group (GB:FRAS) is making headlines today owing to two separate announcements. Firstly, Frasers is initiating a new share buyback plan worth £80 million to reduce its outstanding shares. Secondly, Frasers has increased its stake in online retailer N Brown Group plc (GB:BWNG) to more than 20% from 19.36%. Following the news, FRAS shares gained 3.3%, while BWNG shares were down 3.2% at the time of writing.
FTSE 100-listed Frasers Group is one of the largest sports goods and clothing retailers, offering a portfolio of brands such as Dunlop, Lonsdale, Nike, Adidas, Under Armour, Puma, and Karri. Its Sports Direct retail chain is one of the most popular sports clothing and equipment retailers across Britain and Europe. Year-to-date, FRAS shares are up 5.4%.
More About Frasers’ Updates
Under the accelerated share repurchase plan intended to reduce the company’s share capital, Frasers will buy back a maximum of 10 million ordinary shares. The company will buy back the shares through the last trading day before the close of the financial year ending on April 28, 2024. The repurchased shares will be held in the treasury until cancellation or re-issue plan.
Frasers also announced that it has raised its stake in AIM-listed N Brown Group to own 92.76 million shares. Recently, the sports retailer also raised its stake in online fashion retailers Asos (GB:ASC) and Boohoo (GB:BOO) to 26% and 22%, respectively.
Is Frasers Group a Buy?
With two Buys versus one Hold rating, FRAS stock has a Moderate Buy consensus rating on TipRanks. The Frasers Group share price target of 1,042.50p implies 29.3% upside potential from current levels.
