nVent Electric To Buy Back $300M In Stock

nVent Electric (NVT) announced a new share repurchase program of up to $300 million. Under the program, the global electrical and protection solutions provider will buy back shares over a period of three years.

The new share repurchase program will begin on July 23 upon the expiration of the company’s ongoing share buyback scheme.

Under the new repurchase program, share repurchases are expected to be made in the open market or through block trades and unsolicited negotiated transactions. The repurchases will be in compliance with SEC Rule 10b5-1.

At the end of March 2021, nVent Electric had approximately 168 million shares outstanding.

On April 29, nVent Electric reported Q1 results. Earnings of $0.43 per share outpaced Street estimates of $0.35. Moreover, total revenues of $549 million were above the consensus estimate of $510.8 million. (See nVent Electric stock analysis on TipRanks)

On May 3, Rosenblatt Securities Scott Graham maintained the stock’s price target of $38 (20.2% upside potential) and a Buy rating.

Graham commented, “With orders above sales in all segments, modest restocking benefiting sales, end-markets improving and internal sales and productivity initiatives all having inertia, we believe guidance will prove conservative and have set our 2021 forecast above it. We also raised our 2022 forecast.”

Consensus among analysts is that nVent Electric is a Strong Buy based on 5 unanimous Buys. The average analyst price target of $36.20 implies 14.5% upside potential. The stock has increased 72.6% over the past year.

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