Zacks Investment Research Downgrades DuPont Co. (DD) to Hold
DuPont Co. (NYSE:DD) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Monday.
According to Zacks, “DuPont’s adjusted earnings for third-quarter 2016 topped the Zacks Consensus Estimate, aided by its cost management actions. Revenues rose modestly year over year and beat expectations. The company raised its adjusted earnings guidance for 2016. DuPont is well placed to gain from its aggressive cost-cutting actions and new product launches. The company is also moving forward with its planned mega-merger with Dow Chemical, which is expected to create significant synergies. Moreover, it remains committed to maximize shareholder value. However, DuPont’s agriculture business is still faced with industry-wide challenges. Earnings in this segment are expected to continue to be affected by soft insecticide demand in Latin America and weak farm commodity prices. DuPont is also exposed to significant currency headwinds.”
Several other research analysts have also recently weighed in on DD. Barclays PLC lifted their price target on shares of DuPont from $67.00 to $70.00 and gave the stock an “equal weight” rating in a research note on Wednesday, July 27th. TheStreet cut shares of DuPont from a “buy” rating to a “hold” rating in a research note on Tuesday, July 26th. Macquarie set a $71.00 target price on shares of DuPont and gave the company a “neutral” rating in a research note on Thursday, July 21st. Vetr cut shares of DuPont from a “sell” rating to a “strong sell” rating and set a $61.16 target price on the stock. in a research note on Monday, July 25th. Finally, Citigroup Inc. upgraded shares of DuPont from a “neutral” rating to a “buy” rating and lifted their target price for the company from $72.00 to $76.00 in a research note on Monday, October 3rd. Three equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating and seven have given a buy rating to the stock. The company currently has a consensus rating of “Hold” and an average target price of $71.15.
Shares of DuPont (NYSE:DD) opened at 68.64 on Monday. The stock has a market capitalization of $59.67 billion, a price-to-earnings ratio of 30.37 and a beta of 1.71. The firm’s 50-day moving average is $68.78 and its 200 day moving average is $67.60. DuPont has a 52-week low of $50.71 and a 52-week high of $75.72.
DuPont (NYSE:DD) last issued its quarterly earnings results on Tuesday, October 25th. The company reported $0.34 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.21 by $0.13. The business had revenue of $4.90 billion for the quarter, compared to analysts’ expectations of $4.86 billion. DuPont had a net margin of 8.08% and a return on equity of 27.16%. The company’s revenue was up .9% compared to the same quarter last year. During the same quarter last year, the company posted $0.13 EPS. Equities analysts expect that DuPont will post $3.25 EPS for the current year.
The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 14th. Investors of record on Tuesday, November 15th will be issued a dividend of $0.38 per share. The ex-dividend date is Thursday, November 10th. This represents a $1.52 annualized dividend and a yield of 2.21%. DuPont’s payout ratio is 67.26%.
In other DuPont news, SVP Benito Cachinero sold 58,958 shares of the business’s stock in a transaction dated Wednesday, August 24th. The shares were sold at an average price of $70.36, for a total value of $4,148,284.88. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Christopher Marc Doyle sold 5,422 shares of the business’s stock in a transaction dated Friday, August 26th. The shares were sold at an average price of $69.53, for a total transaction of $376,991.66. The disclosure for this sale can be found here. Corporate insiders own 0.31% of the company’s stock.
A number of large investors have recently added to or reduced their stakes in the stock. Capital World Investors boosted its stake in DuPont by 8.3% in the second quarter. Capital World Investors now owns 97,323,259 shares of the company’s stock valued at $6,306,547,000 after buying an additional 7,484,437 shares during the period. FMR LLC boosted its stake in DuPont by 18.8% in the second quarter. FMR LLC now owns 25,133,333 shares of the company’s stock valued at $1,628,640,000 after buying an additional 3,970,004 shares during the period. Vanguard Group Inc. boosted its stake in DuPont by 2.7% in the second quarter. Vanguard Group Inc. now owns 55,881,243 shares of the company’s stock valued at $3,621,105,000 after buying an additional 1,474,722 shares during the period. The Manufacturers Life Insurance Company bought a new stake in DuPont during the third quarter valued at about $66,510,000. Finally, BlackRock Advisors LLC boosted its stake in DuPont by 13.3% in the third quarter. BlackRock Advisors LLC now owns 7,857,987 shares of the company’s stock valued at $526,249,000 after buying an additional 922,472 shares during the period. 71.24% of the stock is owned by institutional investors.
E. I. du Pont de Nemours and Company (DuPont) is a science and technology-based company. The Company consists of over 10 businesses aggregated into six segments: Agriculture, Electronics & Communications, Industrial Biosciences, Nutrition & Health, Performance Materials and Safety & Protection. Its products include corn hybrids and soybean varieties, herbicides, fungicides and insecticides in Agriculture segment; photopolymers and electronic materials in Electronics & Communications segment; enzymes and bio-based materials in Industrial Biosciences segment; cultures, emulsifiers, texturants, natural sweeteners and soy-based food ingredients in Nutrition & Health segment; engineering polymers, packaging and industrial polymers, films and elastomers in Performance Materials segment, and nonwovens, aramids and solid surfaces in Safety & Protection segment.
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