Back to top

Image: Bigstock

DuPont (DD) to Repurchase $2B Stock in New ASR Transaction

Read MoreHide Full Article

DuPont de Nemours, Inc. (DD - Free Report) has announced the successful conclusion of its $3.25 billion accelerated share repurchase (ASR) transaction, which was initiated last November and referred to as the ‘$3.25B ASR transaction.’ Additionally, the company has disclosed its engagement in new accelerated share repurchase agreements with various counterparties, aiming to repurchase a total of $2 billion worth of common stock, known as the "$2B ASR transaction."

Regarding the $3.25B ASR transaction's completion, DuPont has effectively received and retired an additional 8 million shares of its common stock. Throughout the $3.25B ASR transaction, the company has received and retired a total of 46.8 million shares of DuPont common stock, with an average purchase price of $69.44 per share.

In conjunction with the commencement of the $2B ASR transaction, DuPont will pay $2 billion this week. In return, the company will receive and retire 21.2 million shares of DuPont common stock, equivalent to 80% of the transaction value, as determined by DuPont's closing share price on September 5.

Upon completion, the ultimate number of shares to be received and retired under the $2B ASR transaction will be ascertained. This calculation will consider DuPont common stock's overall transaction value and the volume-weighted average share price during the transaction's duration. DuPont anticipates finalizing the $2B ASR transaction within the first quarter of 2024.

DuPont’s shares have risen 35% in a year compared with the 7.8% rise recorded by the industry.

Zacks Investment Research
Image Source: Zacks Investment Research

DuPont reported second-quarter adjusted earnings of 85 cents per share, surpassing the Zacks Consensus Estimate of 83 cents. Net sales were $3,094 million, down 7% from the previous year but beating the Zacks Consensus Estimate of $3,002.6 million.

In its second-quarter call, DuPont provided guidance for 2023, expecting net sales to be in the range of $12,450-$12,550 million, with adjusted earnings per share (EPS) forecasted to be $3.40-$3.50. For the third quarter of 2023, the company anticipates net sales of around $3,150 million and adjusted EPS of approximately 84 cents.

 

Zacks Rank & Key Picks

DuPont currently carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation (CRS - Free Report) , Akzo Nobel N.V. (AKZOY - Free Report) and Hawkins, Inc. (HWKN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The earnings estimate for Carpenter Technology’s current year is pegged at $3.48, indicating a year-over-year growth of 205%. CRS beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 10%. The company’s shares have rallied 85.7% in the past year.

The consensus estimate for Akzo Nobel’s current-year earnings is pegged at $1.44, indicating year-over-year growth of 67.4%. In the past 60 days, AKZOY’s current-year earnings estimate has been revised upward by 2.9%. The company’s shares have rallied 24.9% in the past year.

The consensus estimate for Hawkins’ current-year earnings is pegged at $3.40, indicating year-over-year growth of 18.9%. HWKN beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 25.6%. The company’s shares have rallied 63.3% in the past year.

Published in