| Symbol | Action | # Shares Traded | Recent Price | % of Portfolio* | Shares Owned* |
|---|---|---|---|---|---|
BUY | 100 | $73.6 | 3.62% | 1800 |
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After you receive this Alert, we will be buying 100 shares of DuPont (DD) at roughly $73.60. Following the trade, DD (1800 shares) will represent 3.62% of the portfolio.
Earlier this morning, DuPont reported a stronger than expected fourth-quarter result, driven by continued strength in its Electronics segment and better than expected EBITDA in Transportation & Industrial (autos). Management also provided 2021 guidance that excluded the now divested Nutrition & Biosciences segment, and we believe the outlook was better than what analysts had anticipated. This is important because management is always pretty conservative with their guide.
In addition to the quarter, we continue to see benefits stemming from the enhanced balance sheet. As part of the N&B transaction, DuPont's outstanding share count was reduced by 27% and the company received $7.3 billion in cash, $5 billion of which is used to pay down debt and the other $2.3 billion is available to both repurchase stock and pursue strategic acquisitions.
You can read more about the quarter in our Alert here.
As Jim said in today's Daily Rundown video, we think the decline in DuPont represents a buying opportunity. We are adding to our position and buying back another portion of the 500 shares we recently sold above $86 in our Alert here.
Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long DD.