UPDATE: Global Hunter Securities Upgrades Encore Wire (WIRE) to Buy; 2.77 Million Share Buyback
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Price: $289.84 --0%
Rating Summary:
1 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
1 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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(Updated - May 16, 2012 9:41 AM EDT)
Global Hunter Securities upgraded Encore Wire (NASDAQ: WIRE) from Accumulate to Buy with a price target of $31.00.
Analyst, Joe Giamichael, said, "Encore Wire announced on Monday that it repurchased 2.77MM shares, or 11.8% of its total shares outstanding, for $66.6MM or $24.02 per share, funded by cash on hand. The repurchase was completed under the previously approved 4MM share buyback program, leaving an additional 1.22MM shares available for future repurchase. This transaction is not only accretive to estimates but shows that management views reinvestment as an attractive capital allocation option for shareholder value creation. As a result of the transaction we are increasing our full-year 2012 and 2013 EPS estimates from $1.80 and $2.15 to $1.94 and $2.43, respectively. Encore has long been a value creator through efficient manufacturing and its conservative approach to managing leverage. While this is a somewhat more aggressive move, we feel that the timing, both in regard to cash on hand and the ability to repurchase at attractive prices, will prove to be a materially accretive development for shareholders. Given the current valuation and management's aggressive approach to enhancing shareholder value, we are upgrading our rating."
For an analyst ratings summary and ratings history on Encore Wire click here. For more ratings news on Encore Wire click here.
Shares of Encore Wire closed at $24.42 yesterday.
Global Hunter Securities upgraded Encore Wire (NASDAQ: WIRE) from Accumulate to Buy with a price target of $31.00.
Analyst, Joe Giamichael, said, "Encore Wire announced on Monday that it repurchased 2.77MM shares, or 11.8% of its total shares outstanding, for $66.6MM or $24.02 per share, funded by cash on hand. The repurchase was completed under the previously approved 4MM share buyback program, leaving an additional 1.22MM shares available for future repurchase. This transaction is not only accretive to estimates but shows that management views reinvestment as an attractive capital allocation option for shareholder value creation. As a result of the transaction we are increasing our full-year 2012 and 2013 EPS estimates from $1.80 and $2.15 to $1.94 and $2.43, respectively. Encore has long been a value creator through efficient manufacturing and its conservative approach to managing leverage. While this is a somewhat more aggressive move, we feel that the timing, both in regard to cash on hand and the ability to repurchase at attractive prices, will prove to be a materially accretive development for shareholders. Given the current valuation and management's aggressive approach to enhancing shareholder value, we are upgrading our rating."
For an analyst ratings summary and ratings history on Encore Wire click here. For more ratings news on Encore Wire click here.
Shares of Encore Wire closed at $24.42 yesterday.
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