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DuPont de Nemours Inc. is currently navigating significant corporate changes with accelerated plans for a spin-off of one of its divisions while retaining another, which analysts believe could unlock additional value for shareholders. While some experts herald the leadership of a capable CEO and the prospects of becoming three separate public entities as a positive development, others raise concerns about the diminishing number of divisions available for future spin-offs. This mixed sentiment underscores a pivotal moment for the company amidst broader industry dynamics. Additionally, the potential for benefiting from interest rate cuts, particularly within homebuilding and related sectors, is noted. However, there remain experts who suggest that, despite the operating soundness of DuPont, alternative investment opportunities may offer better value.
They just finished a $3.25 billion share buyback and will start a $2 billion one. They've retired 7.6% of their shares so far this year. All told they will reduce shares by 13.5%, the 3rd-biggest buyback on the S&P 500. If you feel interest rates will continue to rise, Dupont is too risk; Dupont has some cyclicality because it's exposed to autos. Overall, he likes Dupont.
DD operates in a cyclical industry and is now trading at 20x times' Forward P/E. In the last few years, DD did actively sell some of its non-core assets, and redeploy the proceeds into significant share repurchases. The balance sheet is okay, with net debt of $3.7B (the debt has gone down substantially due to the proceeds from asset sales mentioned) and net debt/EBITDA is around 1.1x, okay for a cyclical name. Based on consensus estimates, sales are expected to decline by 5% this year and then normalize to around 5% growth going forward. Given the aggressive buyback (the company even cuts the dividends to do more buybacks), DD is quite attractive, but, given the cyclicality of the business, we would size the position conversatively.
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DuPont de Nemours Inc. is a American stock, trading under the symbol DD-N on the New York Stock Exchange (DD). It is usually referred to as NYSE:DD or DD-N
In the last year, 6 stock analysts published opinions about DD-N. 2 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for DuPont de Nemours Inc..
DuPont de Nemours Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for DuPont de Nemours Inc..
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
6 stock analysts on Stockchase covered DuPont de Nemours Inc. In the last year. It is a trending stock that is worth watching.
On 2025-04-03, DuPont de Nemours Inc. (DD-N) stock closed at a price of $67.78.
They announced after today's close that they're accelerating the spin-off of a division and keeping the other. This will bring out more value. Worth holding onto.