DuPont de Nemours (NYSE: DD) has received a positive boost from Jefferies Financial Group, which raised its target price for the company’s stock from $51.00 to $59.00. This increase, detailed in a research report released on November 6, 2023, comes as Jefferies maintains a buy rating on the basic materials company, reinforcing confidence in its future performance.
Several other brokerages have also recently adjusted their outlooks on DuPont’s stock. Citigroup increased its target price from $47.00 to $50.00, issuing a buy rating. Similarly, Mizuho raised their price objective from $46.00 to $52.00, also awarding an outperform rating. Wolfe Research boosted its target from $44.00 to $49.00, maintaining an outperform rating. Conversely, Deutsche Bank Aktiengesellschaft cut its target from $90.00 to $46.00 while still assigning a buy rating.
In total, twelve equity research analysts currently rate DuPont with a buy rating, four analysts have given it a hold rating, and one has issued a sell rating. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $49.46.
Latest Earnings and Buyback Plan
DuPont recently reported its earnings for the fourth quarter on February 10, 2024, showing an earnings per share (EPS) of $0.46, surpassing analysts’ expectations of $0.43 by $0.03. The company’s revenue for the quarter was $1.69 billion, meeting consensus estimates. Year-over-year, DuPont’s quarterly revenue increased by 0.2%. The firm also indicated a return on equity of 7.37% and a net margin of -7.03%.
Looking ahead, DuPont has set its guidance for fiscal year 2026 at an EPS range of $2.25 to $2.30, with a first-quarter guidance of $0.48. Analysts project that DuPont will generate an EPS of $4.38 for the current year.
In a significant move, DuPont’s board approved a share buyback plan on November 6, 2023, allowing the company to repurchase up to $2.00 billion worth of outstanding shares. This buyback plan represents approximately 12.2% of the company’s stock, often seen as a signal that the board believes the shares are undervalued.
Insider Activity and Institutional Investments
In recent insider transactions, CEO Lori Koch sold 9,011 shares of the company on November 28, 2023, at an average price of $39.46, totaling $355,574.06. After this sale, Koch retained 288,326 shares, valued at approximately $11.38 million, marking a 3.03% decrease in her ownership.
Additionally, Senior Vice President Erik T. Hoover sold 6,005 shares for an average price of $39.79, totaling about $238,938.95. Following this transaction, Hoover directly owned 112,101 shares, valued at around $4.46 million, reflecting a 5.08% decrease in ownership.
Institutional investors also remain active in DuPont’s stock. Recent reports indicate that Salomon & Ludwin LLC raised its stake by 186.5% during the third quarter, now holding 318 shares valued at $25,000. Other notable investments include Palisade Asset Management LLC and Financial Life Planners, both acquiring new positions in DuPont.
Currently, institutional investors hold approximately 73.96% of DuPont’s stock, highlighting strong institutional confidence in the company’s future.
Overall, the optimistic outlook from analysts, coupled with the company’s strong earnings performance and strategic financial maneuvers, positions DuPont de Nemours favorably within the basic materials sector.
