Curtiss-Wright (NYSE:CW) Corporation, a diversified industrial company, has announced the adoption of two new trading plans for stock repurchases, starting January 2, 2025. These plans, filed in a recent 8-K with the Securities and Exchange Commission, are part of the company's ongoing share buyback initiative, which has a total authorization of $300 million.
The first trading plan, with a budget of $60 million, will be distributed evenly over the 2025 calendar year. The second plan allows for up to $100 million in potential purchases but includes a price limit condition that could affect the execution of the buybacks. Both plans are scheduled to conclude at the end of the 2025 calendar year.
These trading plans are structured under Rule 10b5-1, which permits companies to repurchase their own shares even during blackout periods or when in possession of non-public information, provided the plan was established when the company was not aware of such information. Curtiss-Wright's designated broker will execute trades according to the plans' predefined terms.
The company's approach to share repurchases is seen as a way to return value to shareholders and reflects its confidence in the long-term value of its stock. However, the actual repurchase of shares is subject to market conditions, applicable legal requirements, and other factors.
In other recent news, Curtiss-Wright Corporation has announced a quarterly dividend of $0.21 per share, reflecting the company's financial health and commitment to its investors. The company's recent quarter showed strong financial performance, with double-digit organic growth primarily driven by high demand in its Defense Electronics and Naval & Power segments.
This success led Stifel to raise its price target for Curtiss-Wright shares from $361 to $370, while maintaining a Buy rating. Truist Securities also increased its price target for the company to $333.00, continuing its Hold rating on the stock.
Curtiss-Wright's third quarter of 2024 earnings report revealed a 10% year-over-year sales increase to nearly $800 million, along with a 17% increase in diluted EPS and a 19% rise in free cash flow. In light of these results, the company has raised its full-year 2024 guidance, now anticipating sales growth of 7% to 9% and diluted EPS growth of 12% to 15%. These recent developments underline the company's robust market position, with strategic investments and partnerships, particularly in the commercial nuclear and defense sectors, driving this growth. Despite potential softness predicted by Stifel in the fourth quarter of 2024, Curtiss-Wright's order book remains strong, supporting a mid-single-digit growth outlook for 2025. The company also expects significant increases in commercial nuclear revenue, with projections indicating that this revenue stream will double by 2028.
InvestingPro Insights
Curtiss-Wright's recent announcement of new stock repurchase plans aligns with its strong financial position and commitment to shareholder value. According to InvestingPro data, the company boasts a market capitalization of $13.62 billion and has demonstrated solid financial performance with a revenue of $3.08 billion over the last twelve months as of Q3 2024, representing a 9.42% growth.
InvestingPro Tips highlight that Curtiss-Wright has maintained dividend payments for 51 consecutive years, underscoring its financial stability and dedication to returning value to shareholders. This track record complements the newly announced share buyback plans, potentially making the stock more attractive to long-term investors.
Moreover, the company's profitability is evident from its operating income margin of 18.59% over the last twelve months. This robust profitability supports Curtiss-Wright's ability to fund the announced share repurchase programs without compromising its financial health.
For investors seeking more comprehensive analysis, InvestingPro offers 17 additional tips for Curtiss-Wright, providing deeper insights into the company's financial outlook and market position.
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