Shares of Woodward (WWD) were up as much as 4% on Nov. 20 after the industrial company announced a new $1.8 billion stock buyback program over the coming three years.
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The aerospace and industrial equipment manufacturer said that its board of directors approved the buyback plan as part of its capital allocation strategy, reflecting confidence in its long-term growth trajectory and cash position.
Woodward completed its previous $600 million stock buyback program earlier this month, more than a year ahead of schedule. The share repurchases come with WWD stock having risen more than 50% year-to-date.
Woodward Shareholders
In a news release, Woodward noted that it has returned $2 billion to shareholders through dividends and share repurchases over the past decade, representing about 78% of its net earnings during that period.
While not a household name, Woodward makes essential parts and components for aircraft engines, industrial turbines, and industrial equipment. The stock is one of the largest holdings of billionaire investor Stanley Druckenmiller, ranking among his top five positions in this year’s third quarter.
Is WWD Stock a Buy?
Woodward stock has a consensus Moderate Buy rating among three Wall Street analysts. That rating is based on two Buy and one Hold recommendations issued in the last three months. The average WWD price target of $296.33 implies 12.62% upside from current levels.
