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ABB to Commence Share Repurchase Program of Up to $4.3B
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ABB Ltd recently announced that it will introduce its previously declared share repurchase program on Apr 9, 2021. The company’s share price inched up 0.2% yesterday to eventually close the trading session at $31.21.
Inside the Headlines
This new share repurchase program, which is expected to remain operational till Mar 23, 2022, will be for an aggregate amount of up to $4.3 billion. Under the program, ABB will be entitled to repurchase a maximum of 1,543,644 shares on any particular trading day. Notably, under this new buyback program, the shares will be traded on a second line on the SIX Swiss Exchange.
It’s worth mentioning that last month the company completed its initial share repurchase program, which was introduced in July 2020. Under it, ABB repurchased 128,620,589 shares for a total value of roughly $3.5 billion. However, at the company’s 2021 Annual General Meeting, its shareholders provided approval for cancelling 115 million shares bought under the initial share repurchase program.
Both of the company’s repurchase programs are in line with its policy of rewarding shareholders with cash proceeds of $7.8 billion from the sale of its Power Grids business (sold in July 2020).
Notably, the company’s sound capital-deployment strategies enable it to boost shareholders’ value. It focuses on acquiring lucrative businesses, repurchasing shares apart from providing dividends to shareholders. In April 2020, ABB paid out dividends worth $1,758 million to shareholders.
Zacks Rank, Price Performance and Estimate Trend
ABB, with a $62.7-billion market capitalization, currently carries a Zacks Rank #3 (Hold). The company stands to benefit from its strong market presence, organic growth investments and diligent cost-cutting initiatives over time. However, persistent weakness across automotive and conventional power generation end markets are concerning.
In the past six months, the stock has rallied 16.2% compared with the industry’s growth of 28.1%.
In the past 60 days, the Zacks Consensus Estimate for its earnings has been raised 1.6% to $1.24 for 2021, and the same for 2022 has increased 2.1% to $1.49.
AGCO delivered a trailing four-quarter earnings surprise of 454.97%, on average.
II-VI pulled off a trailing four-quarter earnings surprise of 83.68%, on average.
Regal Beloit delivered a trailing four-quarter earnings surprise of 31.56%, on average.
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ABB to Commence Share Repurchase Program of Up to $4.3B
ABB Ltd recently announced that it will introduce its previously declared share repurchase program on Apr 9, 2021. The company’s share price inched up 0.2% yesterday to eventually close the trading session at $31.21.
Inside the Headlines
This new share repurchase program, which is expected to remain operational till Mar 23, 2022, will be for an aggregate amount of up to $4.3 billion. Under the program, ABB will be entitled to repurchase a maximum of 1,543,644 shares on any particular trading day. Notably, under this new buyback program, the shares will be traded on a second line on the SIX Swiss Exchange.
It’s worth mentioning that last month the company completed its initial share repurchase program, which was introduced in July 2020. Under it, ABB repurchased 128,620,589 shares for a total value of roughly $3.5 billion. However, at the company’s 2021 Annual General Meeting, its shareholders provided approval for cancelling 115 million shares bought under the initial share repurchase program.
Both of the company’s repurchase programs are in line with its policy of rewarding shareholders with cash proceeds of $7.8 billion from the sale of its Power Grids business (sold in July 2020).
Notably, the company’s sound capital-deployment strategies enable it to boost shareholders’ value. It focuses on acquiring lucrative businesses, repurchasing shares apart from providing dividends to shareholders. In April 2020, ABB paid out dividends worth $1,758 million to shareholders.
Zacks Rank, Price Performance and Estimate Trend
ABB, with a $62.7-billion market capitalization, currently carries a Zacks Rank #3 (Hold). The company stands to benefit from its strong market presence, organic growth investments and diligent cost-cutting initiatives over time. However, persistent weakness across automotive and conventional power generation end markets are concerning.
In the past six months, the stock has rallied 16.2% compared with the industry’s growth of 28.1%.
In the past 60 days, the Zacks Consensus Estimate for its earnings has been raised 1.6% to $1.24 for 2021, and the same for 2022 has increased 2.1% to $1.49.
Key Picks
Some better-ranked stocks from the Zacks Industrial Products sector are AGCO Corporation (AGCO - Free Report) , II-VI Incorporated and Regal Beloit Corporation (RBC - 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.
AGCO delivered a trailing four-quarter earnings surprise of 454.97%, on average.
II-VI pulled off a trailing four-quarter earnings surprise of 83.68%, on average.
Regal Beloit delivered a trailing four-quarter earnings surprise of 31.56%, on average.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
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