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DuPont Issues Aggressive Buyback, Expands in China
Excerpt from the InvestorGuide.com Stock of the Day on 11/2/2005

E.I. DuPont is on the move. The company has made recent headlines with its accelerated stock buyback plan worth $3bn, as well as its agreement to repurchase an additional $2bn worth of stock over the course of the next few years. Investors were quick to snatch up shares, which drove prices up over 6% in the course of a week. The company also made Ford's (F: Charts, News, Offers) preferred supplier list, which is especially important since Ford has been consolidating its interactions with suppliers in the hopes of cutting down on costs. What does the buyback mean, and what is DuPont doing to reassert itself after a disappointing year to date?

Goldman Sachs (GS: Charts, News, Offers), an investment banking firm, agreed to head DuPont's 9-month stock repurchase binge, which will cut down outstanding shares by 8%. This boosts their reported earnings per share, since earnings are divided by fewer outstanding shares. Benefits of the buyback should be taken worth a grain of salt since companies often finance the repurchase through loans, which increases debt obligations and ties up capital. Currently, DuPont is in-line with the industry when it comes to debt ratios, but plans for continued buybacks might put more pressure the company from debt. More >


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E.I. du Pont de Nemours and Company (DD) Upgrades

Date
Analyst
Old Rating
New Rating
08/06/2009
Oppenheimer
Underperform
Perform
01/23/2008
BB&T Capital
Hold
Buy
11/28/2007
Soleil Securities Group
Hold
Buy
10/25/2005
Goldman Sachs
Outperform
N/A

E.I. du Pont de Nemours and Company (DD) Downgrades

Date
Analyst
Old Rating
New Rating
09/09/2009
Goldman Sachs
Buy
Neutral citing valuation
06/05/2009
Bank of America
Neutral
Underperform
01/24/2008
Oppenheimer
Peer Perform
Underperform
10/22/2007
Citigroup
Buy
Hold
07/24/2007
BB&T Capital Mkts
Buy
Hold
06/05/2007
Lehman Brothers
Overweight
Equal-Weight

E.I. du Pont de Nemours and Company (DD) New Coverage

Date
Analyst
Rating
06/11/2009
Sterne Agee
Neutral
03/05/2008
Credit Suisse
Outperform
01/17/2008
UBS
Neutral
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