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Stanley Black & Decker Prices 6.75M Equity Units Offering
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Industrial tool maker Stanley Black & Decker, Inc. (SWK - Free Report) recently announced the pricing of its offering, made under its existing shelf registration statement previously filed with the Securities and Exchange Commission, of 6.75 million Equity Units. The offering will close on May 17.
Over the last three months, the company’s yielded a return of 9.26%, outperforming 8.52% gain recorded by the Zacks categorized Machine Tools & Related Products industry.
As revealed, underwriters have the option of buying additional 750,000 Units to cover over-allotments. Initially, the Equity Units will comprise 0% Series C Cumulative Perpetual Convertible Preferred Stock. These preferred stocks will have liquidation value of $675 million and will carry contracts to purchase $675 million worth of the company’s common stock, deliverable in May 2020.
Initial conversion rate will be 6.1627 shares of the common stock per share of the convertible preferred stock. Also, this is equivalent to conversion price of $162.27, representing 17.5% premium over the company’s common stock closing price on May 11.
Stanley Black & Decker will likely use the proceeds, before deducting relevant expenses, of approximately $675 million for partially repaying its debt and funding general corporate purposes. In addition, the company might opt of using part of the proceeds for buying options on its common stock. This act will be largely beneficial for offsetting any dilution caused by conversion of preferred stocks.
With a market capitalization of $21.13 billion, Stanley Black & Decker currently sports a Zacks Rank #1 (Strong Buy). Other stocks worth considering in the machinery industry include Kennametal Inc. (KMT - Free Report) , Parker-Hannifin Corporation (PH - Free Report) and Lincoln Electric Holdings, Inc. (LECO - Free Report) . While both Kennametal and Parker-Hannifin sport a Zacks Rank #1, Lincoln Electric Holdings carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kennametal’s earnings estimates for fiscal 2017 and fiscal 2018 were revised upward in the last 60 days. Also, the company’s average earnings surprise for the last four quarters was a positive 6.24%.
Parker-Hannifin’s average earnings surprise for the last four quarters was a positive 14.94%. Also, earnings expectations for fiscal 2017 and fiscal 2018 improved over the past 60 days.
Lincoln Electric Holdings’ earnings estimates for 2017 and 2018 were revised upward in the last 60 days. Also, the company’s average earnings surprise for the last four quarters was a positive 4.66%.
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Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
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Stanley Black & Decker Prices 6.75M Equity Units Offering
Industrial tool maker Stanley Black & Decker, Inc. (SWK - Free Report) recently announced the pricing of its offering, made under its existing shelf registration statement previously filed with the Securities and Exchange Commission, of 6.75 million Equity Units. The offering will close on May 17.
Over the last three months, the company’s yielded a return of 9.26%, outperforming 8.52% gain recorded by the Zacks categorized Machine Tools & Related Products industry.
As revealed, underwriters have the option of buying additional 750,000 Units to cover over-allotments. Initially, the Equity Units will comprise 0% Series C Cumulative Perpetual Convertible Preferred Stock. These preferred stocks will have liquidation value of $675 million and will carry contracts to purchase $675 million worth of the company’s common stock, deliverable in May 2020.
Initial conversion rate will be 6.1627 shares of the common stock per share of the convertible preferred stock. Also, this is equivalent to conversion price of $162.27, representing 17.5% premium over the company’s common stock closing price on May 11.
Stanley Black & Decker will likely use the proceeds, before deducting relevant expenses, of approximately $675 million for partially repaying its debt and funding general corporate purposes. In addition, the company might opt of using part of the proceeds for buying options on its common stock. This act will be largely beneficial for offsetting any dilution caused by conversion of preferred stocks.
Stanley Black & Decker, Inc. Price and Consensus
Stanley Black & Decker, Inc. Price and Consensus | Stanley Black & Decker, Inc. Quote
Zacks Rank & Key Picks
With a market capitalization of $21.13 billion, Stanley Black & Decker currently sports a Zacks Rank #1 (Strong Buy). Other stocks worth considering in the machinery industry include Kennametal Inc. (KMT - Free Report) , Parker-Hannifin Corporation (PH - Free Report) and Lincoln Electric Holdings, Inc. (LECO - Free Report) . While both Kennametal and Parker-Hannifin sport a Zacks Rank #1, Lincoln Electric Holdings carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kennametal’s earnings estimates for fiscal 2017 and fiscal 2018 were revised upward in the last 60 days. Also, the company’s average earnings surprise for the last four quarters was a positive 6.24%.
Parker-Hannifin’s average earnings surprise for the last four quarters was a positive 14.94%. Also, earnings expectations for fiscal 2017 and fiscal 2018 improved over the past 60 days.
Lincoln Electric Holdings’ earnings estimates for 2017 and 2018 were revised upward in the last 60 days. Also, the company’s average earnings surprise for the last four quarters was a positive 4.66%.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
See today's Zacks "Strong Sells" absolutely free >>.