DuPont Announces 1-for-3 Reverse Stock Split Approval
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: seekingalpha
- Reverse Stock Split: DuPont's board approved a 1-for-3 reverse stock split, reducing the total number of authorized common shares from 1.67 billion to 555.56 million, with trading on a split-adjusted basis expected to begin on June 24 on the NYSE, aimed at enhancing share price to attract more investors.
- Guidance Reaffirmation: The company reaffirmed its guidance for Q2 and FY 2026 for net sales, operating EBITDA, and adjusted earnings, with Q2 EPS projected at approximately $0.59, or about $1.75 post-split, and full-year EPS expected between $2.35 and $2.40, or $7.02 to $7.16 post-split, aligning with FactSet analyst consensus.
- Positive Market Reaction: Following the announcement, DuPont's stock rose 1.8% in after-hours trading, indicating a favorable market response to the reverse split and earnings guidance, which may bolster investor confidence in the company's future growth potential.
- Strategic Implications: This reverse stock split not only aims to improve stock performance but also enhances the company's image in the capital markets, potentially attracting more institutional investors and providing stronger support for future business expansion and investments.
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Analyst Views on DD
Wall Street analysts forecast DD stock price to rise
10 Analyst Rating
8 Buy
2 Hold
0 Sell
Strong Buy
Current: 47.660
Low
44.00
Averages
49.30
High
59.00
Current: 47.660
Low
44.00
Averages
49.30
High
59.00
About DD
DuPont de Nemours, Inc. is engaged in providing advanced solutions that help transform industries. The Company serves various markets, including healthcare, water, construction, and industrial. It operates through two segments, which include Healthcare & Water Technologies and Diversified Industrials. The Healthcare & Water Technologies segment includes packaging, parts and components for medical device and biopharma markets as well as water filtration and purification technologies primarily for industrial wastewater & energy, municipal drinking water & desalination, and life sciences & specialty markets. The Diversified Industrials segment includes building technologies, with a portfolio serving new-build and repair/remodel applications across non-residential and residential construction markets, and industrial technologies, which includes a portfolio of adhesive, wear and friction, and packaging solutions serving aerospace, automotive and printing and packaging markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
DuPont Approves 1-for-3 Reverse Stock Split
- Reverse Stock Split: DuPont's Board of Directors has approved a 1-for-3 reverse stock split, expected to take effect on June 24, 2026, which will consolidate every three shares of common stock into one, thereby reducing the number of outstanding shares and enhancing per-share value.
- Reduction in Authorized Shares: The reverse stock split will decrease the number of authorized shares from 1.67 billion to 555.56 million, aimed at optimizing the capital structure and enhancing shareholder value, reflecting the company's confidence in future stock performance.
- Adjusted Earnings Per Share: Following the reverse stock split, the adjusted earnings per share for Q2 2026 is projected to rise from approximately $0.59 to $1.75, with full-year expectations ranging from $7.02 to $7.16, indicating a significant improvement in the company's profitability.
- Protection of Shareholder Interests: The reverse stock split will not affect any shareholder's proportionate ownership interest, except for adjustments due to fractional shares, ensuring that all shareholders' rights are protected while the company will provide detailed instructions for stock exchange procedures.
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DuPont Announces 1-for-3 Reverse Stock Split Approval
- Reverse Stock Split: DuPont's board approved a 1-for-3 reverse stock split, reducing the total number of authorized common shares from 1.67 billion to 555.56 million, with trading on a split-adjusted basis expected to begin on June 24 on the NYSE, aimed at enhancing share price to attract more investors.
- Guidance Reaffirmation: The company reaffirmed its guidance for Q2 and FY 2026 for net sales, operating EBITDA, and adjusted earnings, with Q2 EPS projected at approximately $0.59, or about $1.75 post-split, and full-year EPS expected between $2.35 and $2.40, or $7.02 to $7.16 post-split, aligning with FactSet analyst consensus.
- Positive Market Reaction: Following the announcement, DuPont's stock rose 1.8% in after-hours trading, indicating a favorable market response to the reverse split and earnings guidance, which may bolster investor confidence in the company's future growth potential.
- Strategic Implications: This reverse stock split not only aims to improve stock performance but also enhances the company's image in the capital markets, potentially attracting more institutional investors and providing stronger support for future business expansion and investments.
See More
DuPont Approves Reverse Stock Split Plan
- Reverse Stock Split: DuPont's Board of Directors has approved a 1-for-3 reverse stock split, effective June 24, 2026, aimed at increasing the per-share price to enhance market appeal and investor interest.
- Share Reduction: Following the reverse split, the number of authorized shares will decrease from 1.67 billion to 555.56 million, with outstanding shares expected to drop from approximately 405 million to about 135 million, optimizing the company's capital structure.
- Earnings Per Share Adjustment: Post-split, the adjusted EPS guidance for Q2 and full year 2026 is projected to be $1.75 and $7.02 to $7.16 respectively, indicating a positive outlook on the company's financial performance.
- Shareholder Rights Protection: The reverse split will not affect shareholders' proportional ownership, and those holding physical certificates will receive instructions from the transfer agent for the exchange process, ensuring all shareholders' rights are properly managed.
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DuPont Approves 1-for-3 Reverse Stock Split
- Reverse Stock Split: DuPont's Board of Directors has approved a 1-for-3 reverse stock split, expected to take effect on June 24, 2026, which will consolidate every three shares of common stock into one, thereby reducing the number of outstanding shares and enhancing per-share value.
- Reduction in Authorized Shares: The reverse stock split will decrease the number of authorized shares from 1.67 billion to 555.56 million, aimed at optimizing the capital structure and enhancing shareholder value, reflecting the company's confidence in future stock performance.
- Adjusted Earnings Per Share: Following the reverse stock split, the adjusted earnings per share for Q2 2026 is projected to rise from approximately $0.59 to $1.75, with full-year expectations ranging from $7.02 to $7.16, indicating a significant improvement in the company's profitability.
- Protection of Shareholder Interests: The reverse stock split will not affect any shareholder's proportionate ownership interest, except for adjustments due to fractional shares, ensuring that all shareholders' rights are protected while the company will provide detailed instructions for stock exchange procedures.
See More
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- Market Outlook: Despite challenges faced by Meta and Microsoft, Cramer remains cautiously optimistic about their future performance, suggesting that these companies could achieve breakthroughs in the evolving AI landscape.
- Emerging Investment Opportunities: Stocks like Arm Holdings and Broadcom are showing strong performance, particularly in the data center and AI chip sectors, reflecting robust market demand for related technologies, making them worth watching for long-term growth potential.
See More
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- Overall Market Performance: Since the April 16 meeting, the S&P 500 has risen by 6.7% and the Nasdaq by 10.6%, indicating a strong market rebound and significantly boosting investor confidence in equities.
- Outstanding Performance by Arm: Arm's stock surged 97.9% since our position initiation, driven by robust demand expectations for CPUs, particularly in the AI sector, with projected revenues of $20 billion this year greatly enhancing its royalty business.
- Cybersecurity Stocks Rebound: CrowdStrike and Palo Alto Networks saw increases of 60.6% and 53.8%, respectively, and despite ZScaler's negative impact, the market remains optimistic about their growth prospects, with price targets raised by multiple Wall Street firms.
- Underperformance of Meta and Home Depot: Meta's stock fell 9.5% primarily due to investor concerns over its spending on generative AI, while Home Depot dropped 7.9% as high mortgage rates dampened growth expectations, reflecting a lack of confidence in their future performance.
See More
DuPont Announces 1-for-3 Reverse Stock Split Approval
- Reverse Stock Split: DuPont's board approved a 1-for-3 reverse stock split, reducing the total number of authorized common shares from 1.67 billion to 555.56 million, with trading on a split-adjusted basis expected to begin on June 24 on the NYSE, aimed at enhancing share price to attract more investors.
- Guidance Reaffirmation: The company reaffirmed its guidance for Q2 and FY 2026 for net sales, operating EBITDA, and adjusted earnings, with Q2 EPS projected at approximately $0.59, or about $1.75 post-split, and full-year EPS expected between $2.35 and $2.40, or $7.02 to $7.16 post-split, aligning with FactSet analyst consensus.
- Positive Market Reaction: Following the announcement, DuPont's stock rose 1.8% in after-hours trading, indicating a favorable market response to the reverse split and earnings guidance, which may bolster investor confidence in the company's future growth potential.
- Strategic Implications: This reverse stock split not only aims to improve stock performance but also enhances the company's image in the capital markets, potentially attracting more institutional investors and providing stronger support for future business expansion and investments.
See More
DuPont Approves Reverse Stock Split Plan
- Reverse Stock Split: DuPont's Board of Directors has approved a 1-for-3 reverse stock split, effective June 24, 2026, aimed at increasing the per-share price to enhance market appeal and investor interest.
- Share Reduction: Following the reverse split, the number of authorized shares will decrease from 1.67 billion to 555.56 million, with outstanding shares expected to drop from approximately 405 million to about 135 million, optimizing the company's capital structure.
- Earnings Per Share Adjustment: Post-split, the adjusted EPS guidance for Q2 and full year 2026 is projected to be $1.75 and $7.02 to $7.16 respectively, indicating a positive outlook on the company's financial performance.
- Shareholder Rights Protection: The reverse split will not affect shareholders' proportional ownership, and those holding physical certificates will receive instructions from the transfer agent for the exchange process, ensuring all shareholders' rights are properly managed.
See More
U.S. Stocks Hit New Highs, Micron Soars 19%
- Strong Market Performance: The S&P 500 and Nasdaq reached all-time highs on Tuesday, although the market pulled back from its session peak, reflecting investor optimism about a potential peace deal between the U.S. and Iran that could reopen the Strait of Hormuz, impacting oil prices and market sentiment.
- Micron's Stock Surge: Memory chipmaker Micron's stock soared 19% following a bullish note from UBS analysts, pushing its market capitalization over $1 trillion, making it the 13th publicly traded company to achieve this milestone, highlighting the strong influence of the AI theme on market gains, with Micron's stock tripling this year and up over 800% in the past 12 months.
- DuPont's Stock Increase: DuPont's shares rose over 2% to approximately $49.25 amid hopes for an Iran deal, despite trading above $50 earlier in the day, indicating market confidence in its materials for water, healthcare, and diversified industrial markets, particularly in the context of fluctuating oil prices.
- Cybersecurity Investment Outlook: Zscaler is set to report earnings, with the market keen to gauge its insights on cybersecurity investments; while not as strong as CrowdStrike and Palo Alto Networks, its performance will influence investor confidence in the cybersecurity sector, with CrowdStrike up nearly 2% and Palo Alto experiencing a slight pullback.
See More
