DuPont To Reportedly Offload Kevlar, Nomex: Stock Gains After-Hours, But Will Retail Traders Shed Bearishness?
The company is currently exploring its strategic options, and it has employed advisors to help it determine the best course of action. The sale is estimated to fetch up to $2 billion.
Shares of DuPont de Nemours Inc. (DD) gained nearly 2% in Monday’s after-hours trading session amid reports that the company is looking to offload two of its heat-resistant fiber brands.
According to a Bloomberg report citing people familiar with the matter, DuPont is considering selling Kevlar and Nomex safety brands.
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The company is currently exploring its strategic options, and it has employed advisors to help it determine the best course of action.
The report states that a sale could fetch DuPont up to $2 billion, citing anonymous sources.
Kevlar and Nomex are both heat-resistant fibers. Kevlar is a synthetic, light-weight fiber that is used to produce body armor, coatings, cables, and mining protective equipment, among other things.
Nomex is used in making protective garments and fabrics, and for producing insulation material used in defense and aerospace industries.
During its fourth-quarter earnings in February, DuPont said it plans to spin off only the electronics business and expects to complete this process by November this year.
“We also remain excited for and confident in DuPont's value creation opportunities following the Electronics separation, centered around the high growth businesses of Water and Healthcare, along with other market-leading industrial product lines,” said DuPont CEO Lori Koch.
Retail sentiment on Stocktwits around DuPont ended on an ‘extremely bearish’ (11/100) note on Monday from ‘bearish’ a day ago.
Data from Koyfin shows the average price target for DuPont is $97.41, implying an upside of 30% from current levels.
Of the 20 analyst calls, there were 16 ‘Buy’ and ‘Strong Buy’ ratings, three ‘Hold’ and one ‘Strong Sell’ recommendation.
DuPont’s share price has declined over 2% year-to-date.
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