Stanley Black & Decker Signs Agreements to Repurchase Shares Worth $2B

Connecticut-based Stanley Black & Decker, Inc. (NYSE: SWK) has signed accelerated share repurchase (ASR) agreements with Citibank and Bank of America to repurchase its common shares worth $2 billion.

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This share buyback plan is in addition to the $300 million worth of share repurchases the company made in the open market during the current quarter.

The CEO of Stanley Black & Decker, Jim Loree, said, “These repurchase actions are a significant step to complete our expected $4 billion share repurchase in 2022. These repurchases come as we look to deliver another strong year in 2022 and continue to position the business for a multi-year runway for growth and margin expansion.”

As per the terms of the ASR agreements, Citibank and Bank of America made an initial delivery of nearly 10.8 million common shares to the tool manufacturer on March 2.

About Stanley Black & Decker

Stanley Black & Decker manufactures industrial tools, household hardware and security products. Its offerings include power tools, hand tools, storage solutions, digital tool solutions, lifestyle products, outdoor products, engineered fasteners and other industrial equipment.

The company’s brands include DEWALT, BLACK+DECKER, CRAFTSMAN, STANLEY, Cub Cadet, Hustler and Troy-Bilt.

SWK stock closed almost 4% up on Wednesday. It gained another 0.5% in the extended trading session to end the day at $165.15.

Analysts’ Take

Last month, Mizuho Securities analyst Brett Linzey maintained a Buy rating on the stock with a price target of $222 (35.1% upside potential).

Additionally, Eric Lau of Citigroup (NYSE: C) downgraded the rating on SWK from Buy to Sell with a $145 price target (11.8% downside potential).

Lau said, “We downgrade SWK due to recent margin dilutive acquisitions, potential m/s loss, and lack of new innovative products.”

Overall, the stock has a Moderate Buy consensus rating based on 7 Buys, 1 Hold and 2 Sells. The average Stanley Black & Decker price target of $209.40 implies 27.4% upside potential. Shares have lost 20.3% over the past six months.

Blogger Opinions

TipRanks data shows that financial blogger opinions are 100% Bullish on SWK, compared to the sector average of 70%.

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