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NYSE:DD
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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This is in a tentative deal with Dow Chemical. DuPont was a bit of an MBA class analysis that was not run particularly well. Always a little bit of an underachiever. Nelson Peltz came, got some board seats and encouraged change. If they get together with Dow, we’ll see what comes out of it. He wouldn’t buy it at this point, simply because of the change that is going on, but he likes this scenario.
DuPont de Nemours Inc. is a American stock, trading under the symbol DD (previously DD-N on Stockchase) on the New York Stock Exchange (DD). It is usually referred to as NYSE:DD or DD
In the last year, no analyst issued a Buy, Sell, or Hold rating on DD (previously DD-N on Stockchase) on Stockchase. Read the latest expert commentary for DuPont de Nemours Inc..
DuPont de Nemours Inc. was recommended as a Top Pick by Ian Shaffer on 2016-10-17. 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 DuPont de Nemours Inc..
DuPont de Nemours Inc. is followed by 39 investors on Stockchase and is a trending stock that is worth watching.
On 2026-06-18, DuPont de Nemours Inc. (DD) stock closed at a price of $47.80.
Reported a disappointing quarter today, but he feels is on the cusp to rise. He trusts the CEO who see green shoots in the electronics end markets that would drive company earnings.