CRYSTAL LAKE, Ill. - AptarGroup, Inc. (NYSE: NYSE:ATR), a global provider of a wide range of dispensing, sealing and material science solutions for various industries, has announced a new share repurchase program. The company's Board of Directors has authorized the buyback of up to $500 million of its common stock, replacing all previous repurchase authorizations.
The repurchase strategy allows for stock acquisition through open market transactions, privately negotiated deals, or other methods, depending on market conditions. Furthermore, Aptar has declared a quarterly cash dividend of $0.45 per share, payable on November 14, 2024, to shareholders of record as of October 24, 2024.
Aptar's President and CEO, Stephan Tanda, stated that the company continues to take a balanced approach towards capital allocation, emphasizing shareholder returns while investing in business growth through capacity expansions and strategic acquisitions. Tanda highlighted that over the past five years, Aptar has returned over $780 million to shareholders through dividends and stock repurchases.
The timing and volume of the share repurchases will depend on various factors, including market conditions, stock price, regulatory requirements, and capital availability. Aptar does not have a commitment to purchase a minimum number of shares or amount of stock, and the program may be adjusted, paused, or terminated at the company's discretion.
In addition to the repurchase program, Aptar has scheduled a conference call for October 25, 2024, to discuss third-quarter financial results. The call, which is expected to last approximately one hour, will be available via live webcast on the company's investor relations website, with a replay also accessible for a limited period.
Based in Crystal Lake, Illinois, Aptar serves diverse markets, including pharmaceuticals, beauty, food, beverage, personal care, and home care. The company boasts a workforce of over 13,000 employees across 20 countries.
The information in this article is based on a press release statement from AptarGroup, Inc.
In other recent news, AptarGroup has reported significant advancements. The company's second quarter of 2024 was marked by a 12% rise in adjusted earnings per share (EPS) and a 3% increase in overall core sales, primarily propelled by a 7% increase in core sales in its pharma segment. However, the beauty segment experienced a decline due to weaker sales in Europe. Analysts from Baird maintain their positive stance on AptarGroup, emphasizing its robust portfolio, particularly the pharmaceutical division, and operational improvements in its Packaging (NYSE:PKG) segment. Meanwhile, BofA Securities has maintained its Buy rating on AptarGroup and raised the price target to $174 from $168.
One of the significant developments for AptarGroup is the acceptance of its N-Sorb nitrosamine mitigation solution into the U.S. Food & Drug Administration's Emerging Technology Program. Looking forward, Aptar anticipates growth in the pharma segment to continue into the third quarter, with predicted adjusted EPS between $1.38 and $1.46 per share. The company maintains a solid balance sheet, a leverage ratio of approximately 1.3, and is open to bolt-on acquisitions. These are the recent developments for AptarGroup.
InvestingPro Insights
AptarGroup's recent announcement of a $500 million share repurchase program and quarterly dividend declaration aligns well with its strong financial position and commitment to shareholder returns. According to InvestingPro data, the company boasts a market capitalization of $10.57 billion and has demonstrated consistent profitability, with a revenue of $3.56 billion in the last twelve months as of Q2 2024.
InvestingPro Tips reveal that AptarGroup has raised its dividend for an impressive 31 consecutive years, underscoring its dedication to returning value to shareholders. This track record of dividend growth is further supported by the company's dividend yield of 1.13% and a notable dividend growth rate of 18.42% over the last twelve months.
The company's financial health appears robust, with InvestingPro Tips indicating that AptarGroup operates with a moderate level of debt and its cash flows can sufficiently cover interest payments. This financial stability supports the company's ability to continue its share repurchase program and maintain its dividend policy.
It's worth noting that AptarGroup is trading near its 52-week high, with a price that is 98.56% of its 52-week high value. This performance is reflected in the stock's total returns, showing a 30.38% year-to-date increase and a 27.79% return over the past year.
For investors seeking more comprehensive insights, InvestingPro offers 12 additional tips for AptarGroup, providing a deeper understanding of the company's financial position and market performance.
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