Background: E.I. DuPont de Nemours is involved in science and technology in a range of disciplines including high-performance materials, specialty chemicals, pharmaceuticals and biotechnology. The company trades an average of 3 million shares per day and has a market cap of $63 billion.
52-Week Range: $52.02 to $69.64
Dupont's competitors include BASF SE
(BASFY) and Dow Chemical
Dupont faces a billion dollar lawsuit from an ironworker's union pension fund. The market quickly brushed it aside, and the stock is near multi-year highs. In other words, lawyers may make some money but don't expect a court order forcing Dupont to cut a check anytime soon.
According to Dupont's CEO Ellen Kullan in the last earnings call, a $100 investment from the end of 2008 to the end of 2014 would have been worth $314 versus $228 for the S&P 500.
Dupont's $1.80 annual dividend makes it easier to pull the trigger. That works out to a yield near 2.6% and you may want to leave it in your portfolio regardless of the share price.
Company share buybacks have resulted in a relatively stable float. The target amount of buybacks appears to exceed employee option grants. The company announced it would continue with another billion in buybacks this year. One point to note with insider transactions, they're not buying shares. With the stock near $70, it's a good example how insiders often make poor market timers.
The last reported short interest is paltry and without reason to consider it a meaningful influence at only 2% of the average trading floats.
As previously stated, rising revenue and income per share drives a stock to new levels. Dupont encapsulates both and I believe the shares will continue appreciating.