MIDLAND, Mich.—Gaurdie E. Banister Jr., a director at Dow Inc. (NYSE:DOW), recently purchased 7,339 shares of the company's common stock, according to a filing with the Securities and Exchange Commission. The shares were acquired at a weighted average price of $40.87, resulting in a total transaction value of approximately $299,932. The purchase comes as the stock trades near its 52-week low of $40.04, with InvestingPro data showing the chemical giant offering a substantial 6.98% dividend yield. Following this purchase, Banister holds a total of 10,924 shares indirectly through a corporation. Additionally, the filing notes a separate holding of 15,219 shares directly owned, which includes previously reported restricted stock units. According to InvestingPro analysis, this insider buying aligns with broader management confidence, as the company has been actively repurchasing shares. For deeper insights into Dow's insider trading patterns and 10+ additional ProTips, subscribers can access the comprehensive Pro Research Report.
In other recent news, Dow Inc. has seen several adjustments in its stock outlook following its third-quarter earnings report. Evercore ISI has upgraded Dow to Outperform, setting a new price target of $56, while Piper Sandler cut its target to $60 but retained an Overweight rating. Meanwhile, Mizuho (NYSE:MFG) raised its target to $56, and Jefferies cut its target to $53, both maintaining a Neutral rating.
Dow reported a modest 1% year-over-year increase in net sales for the third quarter of 2024, amounting to $10.9 billion, and an operating EBIT of $641 million. However, cash flow from operations decreased to $800 million due to an increase in inventories. The company also recently sold a 40% stake in certain U.S. Gulf Coast infrastructure assets to Macquarie Asset Management for $2.4 billion, aligning with its initiative to optimize its global asset portfolio.
In the face of challenges such as high energy costs and slower demand affecting European margins, Dow is conducting a strategic review of its European Polyurethanes assets, with results expected by mid-2025. Despite these challenges, Dow aims to achieve over $3 billion in additional annual earnings by 2030, backed by strategic asset management and investments. Analysts from several firms have offered their forecasts and adjustments in light of these recent developments.
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