Ollie's Bargain Outlet Holdings Inc. stock climbed 3.3% during morning trading on Tuesday after the company announced a new $500 million share repurchase authorization approved by its Board of Directors.

The approval increases the company's total available buyback capacity to approximately $561 million. The retailer released the announcement before the market opened, and shares reached a session high of $93.88 before pulling back.

Chief Executive Officer Eric van der Valk said the authorization "demonstrates our confidence in the durability of Ollie's business model, our ability to generate substantial cash flow over time, and in the strength of our financial position."

The new repurchase program does not have an expiration date and adds to the company's existing buyback capacity rather than replacing it. Management can execute the buybacks through open-market purchases or privately negotiated transactions.

Piper Sandler maintained an Overweight rating on OLLI with a $100 price target. The firm noted that the stock traded at approximately 14 times earnings, which it described as an all-time low valuation. Shares of the off-price retailer are down roughly 23% for 2026.