Dana Incorporated (DAN - Free Report) announced that it increased the cash consideration to combine the driveline unit of GKN plc. Under the improved terms, Dana will be paying an additional $140 million (£100 million), leading to a total cash consideration of roughly $1.77 billion (£1.28 billion) for the deal. The total figure includes approximately $1 billion (£700 million) in net pension liabilities and 133 million of Dana shares to be issued to GKN's shareholders.
At the beginning of March, Dana announced its decision to create Dana plc, a United Kingdom-based leader in driveline systems by combining existing driveline division of GKN plc. Under the signed agreement, Dana will own approximately 53% stake while GKN will own 47%.
Per management, this planned deal will enable Dana to strengthen its footprint in the vehicle drive systems market and create a significant position in electric propulsion which is anticipated to be the future of vehicle drivetrains.
Dana Incorporated Price and Consensus
Further, strong interest and confidence shown by the investors in support of GKN Driveline combination have enabled Dana to increase the cash combination for the deal. In sync with this, the company has doubled the share repurchase program to $200 million (£145 million). This was done to maintain liquidity across all markets after the completion of the deal. The company has plans to repurchase shares in the open market or through private transactions. The buyback is planned to be funded via its liquidity and cash generation.
Price Performance
Over a year, shares of Dana outperformed the industry it belongs to. During the period, its stock rose 39% in comparison with the industry’s gain of 18.9%.
Zacks Rank & Key Picks
Dana carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are AB Volvo (VLVLY - Free Report) , Volkswagen AG and BMW AG (BAMXF - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Volvo has expected long-term growth rate of 15%. Over a year, shares of the company declined 23%.
Volkswagen has expected long-term growth rate of 18.7%. Shares of the company gained 26.2% in the past one year.
BMW has expected long-term growth rate of 4.2%. Over a year, shares of the company gained 14.2%.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Dana Incorporated (DAN - Free Report) announced that it increased the cash consideration to combine the driveline unit of GKN plc. Under the improved terms, Dana will be paying an additional $140 million (£100 million), leading to a total cash consideration of roughly $1.77 billion (£1.28 billion) for the deal. The total figure includes approximately $1 billion (£700 million) in net pension liabilities and 133 million of Dana shares to be issued to GKN's shareholders.
At the beginning of March, Dana announced its decision to create Dana plc, a United Kingdom-based leader in driveline systems by combining existing driveline division of GKN plc. Under the signed agreement, Dana will own approximately 53% stake while GKN will own 47%.
Per management, this planned deal will enable Dana to strengthen its footprint in the vehicle drive systems market and create a significant position in electric propulsion which is anticipated to be the future of vehicle drivetrains.
Dana Incorporated Price and Consensus
Further, strong interest and confidence shown by the investors in support of GKN Driveline combination have enabled Dana to increase the cash combination for the deal. In sync with this, the company has doubled the share repurchase program to $200 million (£145 million). This was done to maintain liquidity across all markets after the completion of the deal. The company has plans to repurchase shares in the open market or through private transactions. The buyback is planned to be funded via its liquidity and cash generation.
Price Performance
Over a year, shares of Dana outperformed the industry it belongs to. During the period, its stock rose 39% in comparison with the industry’s gain of 18.9%.
Zacks Rank & Key Picks
Dana carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are AB Volvo (VLVLY - Free Report) , Volkswagen AG and BMW AG (BAMXF - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Volvo has expected long-term growth rate of 15%. Over a year, shares of the company declined 23%.
Volkswagen has expected long-term growth rate of 18.7%. Shares of the company gained 26.2% in the past one year.
BMW has expected long-term growth rate of 4.2%. Over a year, shares of the company gained 14.2%.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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