Full access to Entrepreneur for $5
Subscribe

American Vanguard (AVD) Announces Share Buyback Program

American Vanguard's (AVD) buyback program will offset the increase of outstanding shares stemming from equity awards made to the company's employees.

By
This story originally appeared on Zacks

American Vanguard Corporation AVD announced that its board has approved a plan for repurchasing up to 300,000 shares of common stock within the requirements of Exchange Act Rule 10b-18 over the next six months.

- Zacks

This buyback program will help offset the expansion of outstanding shares emerging from equity awards made to the company’s workforce. The company believes that equity awards will help sync the interests of its employees with the stockholders. It will also enable employees to share in the company’s long-term success and help it retain personnel, especially in competitive employment markets.

The authorization to buy back shares further reflects on the strong degree of confidence that its board has in the strategic growth initiatives that are transforming American Vanguard, including new technologies in Green Solutions and precision application.

Shares of American Vanguard have gained 4.1% in the past year compared with a 22.4% rise of the industry.

Zacks Investment Research

Image Source: Zacks Investment Research

American Vanguard, in its last earnings call, stated that it is well placed in domestic and international markets. The company reaffirmed its earlier outlook for 2021. It sees low double-digit revenue growth and comparatively stronger growth in both net income and EBITDA factoring in favorable market conditions. American Vanguard also expects these factors along with well-managed operating expenses to further strengthen the balance sheet.

 

Zacks Rank & Key Picks

American Vanguard currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Nucor Corporation NUE, Dow Inc. DOW and Cabot Corporation CBT.

Nucor has a projected earnings growth rate of around 494% for the current year. The company’s shares have soared 159.5% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Dow has an expected earnings growth rate of around 403.01% for the current year. The company’s shares have gained 35.4% in the past year. It currently holds a Zacks Rank #2 (Buy).

Cabot has an expected earnings growth rate of around 138.5% for the current fiscal. The company’s shares have rallied 43% in the past year. It currently carries a Zacks Rank #2.



Bitcoin, Like the Internet Itself, Could Change Everything

Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. 

See 3 crypto-related stocks now >>



Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

 

Nucor Corporation (NUE): Free Stock Analysis Report

 

Dow Inc. (DOW): Free Stock Analysis Report

 

Cabot Corporation (CBT): Free Stock Analysis Report

 

American Vanguard Corporation (AVD): Free Stock Analysis Report

 

To read this article on Zacks.com click here.

 

Zacks Investment Research