DuPont de Nemours (NYSE: DD) received a positive boost from Jefferies Financial Group, which raised its target price for the stock from $51.00 to $59.00. The upgrade, announced in a research report published on February 7, 2024, comes as the company is experiencing positive momentum in the market. Jefferies has assigned a “buy” rating to DuPont, reflecting confidence in the basic materials company’s future performance.
The upgrade from Jefferies is part of a broader trend among equity analysts. Citigroup also increased its target price for DuPont from $47.00 to $50.00 with a “buy” rating, while Mizuho adjusted its price objective from $46.00 to $52.00, maintaining an “outperform” rating. Wolfe Research has similarly raised its target from $44.00 to $49.00, supporting the “outperform” classification.
In contrast, Deutsche Bank Aktiengesellschaft cut its price target from a previous $90.00 to $46.00 but retained a “buy” rating. BMO Capital Markets also revised its expectations, lowering its target from $104.00 to $50.00 while still labeling the stock as “outperform.” Collectively, analysts have given DuPont a consensus rating of “Moderate Buy,” with an average price target of $49.46.
Recent Financial Performance
DuPont de Nemours reported its latest earnings on February 10, 2024, revealing earnings per share (EPS) of $0.46 for the quarter, exceeding analysts’ estimates of $0.43 by $0.03. The company generated revenue of $1.69 billion for the quarter, aligning with expectations.
The firm’s return on equity was reported at 7.37%, while it faced a negative net margin of 7.03%. Importantly, DuPont’s quarterly revenue saw a marginal increase of 0.2% compared to the same quarter last year. The prior year’s earnings were $1.13 per share.
DuPont has set guidance for fiscal year 2026, estimating EPS in the range of $2.25 to $2.30, with first-quarter guidance at $0.48. Analysts forecast that the company will achieve an EPS of $4.38 for the current year.
Share Buyback and Insider Transactions
In a significant move to enhance shareholder value, DuPont announced a share buyback program on November 6, 2023, authorizing the repurchase of up to $2.00 billion of its outstanding shares. This plan allows the company to buy back as much as 12.2% of its stock through open market purchases, a gesture indicating the board’s belief in the company’s undervaluation.
In terms of insider activity, CEO Lori Koch sold 9,011 shares on November 28, 2023, at an average price of $39.46, totaling approximately $355,574.06. This transaction reduced her ownership to 288,326 shares, valued at roughly $11.38 million.
Senior Vice President Erik T. Hoover also sold 6,005 shares on the same day at an average price of $39.79, worth about $238,938.95. This sale decreased his ownership to 112,101 shares, valued at approximately $4.46 million. Insider ownership currently stands at 0.61%.
Institutional investors have shown increased interest in DuPont. Hedge funds and other entities have made significant adjustments to their holdings. For instance, Salomon & Ludwin LLC raised its stake by 186.5% during the third quarter, while Palisade Asset Management LLC and Financial Life Planners have also acquired new stakes valued at approximately $26,000 and $27,000, respectively. Overall, institutional investors hold 73.96% of the stock.
As DuPont de Nemours navigates the evolving market landscape, analysts and investors are closely monitoring its performance, especially in light of the recent earnings beat and target price increases. The combination of positive financial results and favorable analyst ratings positions the company for potential growth in the upcoming quarters.
