MIDLAND, MI—James R. Fitterling, Chair and CEO of Dow Inc. (NYSE:DOW), has recently acquired a significant amount of the company's common stock. According to a Form 4 filing with the Securities and Exchange Commission, Fitterling purchased a total of 25,600 shares of Dow Inc. on December 12, 2024. This insider purchase comes as the stock trades near its 52-week low of $40.43, with InvestingPro analysis indicating the stock is currently undervalued.
The purchases were made at prices ranging from $41.4545 to $41.5193 per share, resulting in a total transaction value of approximately $1,062,155. Following these transactions, Fitterling holds a substantial number of shares both directly and indirectly through a trust and a 401(k) plan.
These acquisitions reflect Fitterling's continued investment in the company he leads, as Dow Inc. remains a key player in the industrial sector, specializing in plastics, materials, and synthetic resins.
In other recent news, Dow has made several significant business moves. The company has divested a 40% stake in its Gulf Coast infrastructure assets to Macquarie Asset Management for $2.4 billion, a move that is part of Dow's broader initiative to reassess non-product producing operations. Furthermore, Dow has seen adjustments to its stock outlook from investment firms Piper Sandler, Mizuho (NYSE:MFG), and Jefferies. While Piper Sandler lowered the price target to $60 and maintained an Overweight rating, Mizuho raised the stock price target to $56.00 and Jefferies revised the price target to $53.00, both maintaining a neutral rating.
These adjustments followed Dow's third-quarter earnings per share (EPS) of $0.47, surpassing estimates. Dow reported a 1% year-over-year increase in net sales for the third quarter of 2024, amounting to $10.9 billion. However, cash flow from operations decreased to $800 million, primarily due to an increase in inventories.
In other recent developments, Dow has entered a long-term hydrogen supply agreement and acquired Circulus to enhance its recycled capacity. The company is also conducting a strategic review of its European polyurethane assets, with results expected by mid-2025. Despite challenges such as high energy costs and slower demand affecting European margins, Dow aims to achieve over $3 billion in additional annual earnings by 2030, backed by strategic asset management and investments.
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