Corteva announces $1.5B stock buyback program
WILMINGTON – Corteva announced Thursday evening that it was launching a $1.5 billion stock buyback program.
The global agriscience company headquartered off Route 141 plans to buy back shares periodically in open-market or private transactions. The actual timing, number and value of shares repurchased under the program authorized by the company’s board of directors will be determined at the discretion of management and depend on a variety of factors, including the market price, general market and economic conditions, applicable legal requirements, and other business considerations.
“This action underscores the board’s confidence in the company’s execution of our strategy and continued ability to generate value for shareholders by capitalizing on our distinctive competitive advantages,” Corteva CEO Jim Collins said in a statement announcing the new buyback program.
The billion-dollar buyback offer is larger than its most recent previous effort, a $1 billion repurchase program announced in 2019, which the company expects to complete by the end of this year. That is more than one year ahead of its initial timeline, subject to market conditions and other considerations.
Last month, Corteva also announced that it was increasing its quarterly dividend by nearly 8% to 14 cents a share.
Those moves, along with better than expected second quarter earnings and revenues, and improved Fiscal Year 2021 guidance, led the share value of Corteva (CTVA) to jump about 8% on Aug. 6 in day trading.
“Corteva’s new share repurchase program, together with the company’s recent dividend increase, demonstrate Corteva’s firm financial foundation, positive performance outlook and commitment to capital allocation discipline. Going forward, our strategy is to balance targeted strategic growth investments with returning cash to shareholders,” said Dave Anderson, executive vice president and chief financial officer for Corteva.