Richard K. Davis, a director at Dow Inc. (NYSE:DOW), has recently acquired 6,025 shares of the company's common stock. The chemical giant, currently valued at $28.2 billion, has seen its management actively buying back shares according to InvestingPro data. The purchase, completed on December 12, was made at a weighted average price of $41.449 per share, totaling approximately $249,730. Following this transaction, Davis holds a total of 43,026 shares in the company. The shares were acquired directly, reflecting Davis's growing investment in Dow Inc., which currently offers a substantial 6.85% dividend yield. The timing is notable as the stock trades near its 52-week low, with InvestingPro analysis suggesting the shares may be undervalued. For comprehensive insider trading patterns and 10+ additional ProTips, explore the full Pro Research Report available on InvestingPro.
In other recent news, Dow has sold a 40% stake in certain U.S. Gulf Coast infrastructure assets to Macquarie Asset Management for $2.4 billion. This move aligns with Dow's strategy of focusing on its primary chemicals business. Additionally, Dow is conducting a strategic review of its European Polyurethanes assets, with results expected by mid-2025.
In financial developments, Dow reported a 1% year-over-year increase in net sales for the third quarter of 2024, totaling $10.9 billion. Operating EBIT also rose to $641 million, though cash flow from operations decreased to $800 million primarily due to an increase in inventories.
Investment firms have made recent adjustments to Dow's stock outlook. Piper Sandler lowered Dow's price target to $60 while maintaining an Overweight rating. Mizuho (NYSE:MFG) raised the stock price target to $56, and Jefferies revised the price target to $53, both firms maintaining a neutral rating.
In further news, Dow has entered a long-term hydrogen supply agreement and acquired Circulus to boost its recycled capacity. 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 through strategic asset management and investments.
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