New to Zacks? Get started here.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.
If you wish to go to ZacksTrade, click
OK. If you do not, click Cancel.
Back to top
Honeywell Declares $5B Share Buyback Plan
ITT HON RAVN
Global diversified technology and manufacturing company
Honeywell International Inc. ( HON - Analyst Report) recently authorized a new share repurchase program as part of its corporate strategy to provide attractive risk-adjusted returns to its stockholders. The new share buyback program replaces the erstwhile $3 billion share repurchase policy that was completed in 2011.
Under the new share repurchase program, Honeywell can repurchase up to $5 billion worth of shares over a period of time through open market transactions. The strategic move signifies an inherent strength in the company’s balance sheet and working capital management that gives it enough confidence to generate adequate cash flow to deliver shareholder value.
Over the years, Honeywell has consistently returned significant cash to its shareholders through dividends and share repurchases. Honeywell’s diversified business portfolio has the potential to earn consistent above-average returns and mitigate operating risks. The company’s diligent focus on working capital management, free cash flow generation and a conservative balance sheet remain the key positives amid a challenging macroeconomic environment.
Based in Morris Township, NJ, Honeywell manufactures a wide range of aerospace products and services, control, sensing and security technologies for buildings, homes and industry, turbochargers, automotive products, specialty chemicals, electronic and advanced materials, process technology for refining and petrochemicals and energy efficient products and solutions for homes, business and transportation.
Honeywell organizes its business into four operating segments – Aerospace, Automation and Control Solutions, Performance Materials and Technologies, and Transportation Systems. Honeywell’s diversified business portfolio mitigates operating risks and enables it to earn consistent above-average returns.
Honeywell also has a Zacks Rank #3 (Hold). Other notable companies in the industry include ITT Corp. ( ITT - Analyst Report) , Hutchison Whampoa Ltd. , and Raven Industries Inc. ( RAVN - Analyst Report) , each carrying a Zacks Rank #2 (Buy).