Stock Repurchase Program Announced by Entegris (NASDAQ:ENTG) Board

Key Points

• Entegris approved a $500 million share-repurchase program, authorizing open-market purchases of up to 2.6% of its outstanding shares.
• For its latest quarter, the semiconductor company reported EPS of $1.23, beating the $1.03 consensus, and revenue of $1.01 billion, up 24.6% year over year.
• Analysts’ consensus rating was Buy, with an average price target of $187.17; shares rose 9.4% on Monday to $140.06.

Entegris (NASDAQ:ENTG - Get Free Report) announced that its Board of Directors has approved a stock repurchase program on Monday, November 9th, RTT News reports. The company plans to repurchase $500 million in outstanding shares. This buyback authorization authorizes the semiconductor company to purchase up to 2.6% of its stock through open market purchases. Share buyback programs are generally an indication that the company's board of directors believes its stock is undervalued.

Wall Street Analyst Weigh In

Several research firms have recently commented on ENTG. Wall Street Zen downgraded Entegris from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 8th. Weiss Ratings upgraded shares of Entegris from a "hold (c)" rating to a "buy (b-)" rating in a report on Friday, October 30th. Citigroup boosted their price target on shares of Entegris from $195.00 to $200.00 and gave the stock a "buy" rating in a research report on Friday, October 30th. Barclays lifted their target price on shares of Entegris from $212.00 to $224.00 and gave the stock an "overweight" rating in a research note on Friday, October 30th. Finally, Freedom Capital upgraded Entegris to a "strong-buy" rating in a report on Monday, August 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Entegris has an average rating of "Buy" and a consensus price target of $187.17.

Entegris Stock Up 9.4%

Shares of NASDAQ ENTG traded up $12.08 during trading on Monday, reaching $140.06. The company had a trading volume of 4,807,647 shares, compared to its average volume of 3,159,999. The company has a quick ratio of 1.59, a current ratio of 2.66 and a debt-to-equity ratio of 0.75. The stock has a market cap of $21.40 billion, a PE ratio of 54.71, a P/E/G ratio of 1.12 and a beta of 1.39. Entegris has a 12-month low of $67.97 and a 12-month high of $186.94. The business's 50-day moving average is $146.26 and its 200 day moving average is $138.69.

Entegris (NASDAQ:ENTG - Get Free Report) last posted its earnings results on Thursday, October 29th. The semiconductor company reported $1.23 earnings per share for the quarter, beating analysts' consensus estimates of $1.03 by $0.20. Entegris had a net margin of 11.14% and a return on equity of 13.86%. The firm had revenue of $1.01 billion during the quarter, compared to analyst estimates of $925.35 million. During the same period last year, the firm posted $0.72 earnings per share. Entegris's revenue for the quarter was up 24.6% compared to the same quarter last year. As a group, equities analysts forecast that Entegris will post 4.38 earnings per share for the current fiscal year.

Entegris Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 18th. Shareholders of record on Wednesday, October 28th will be given a dividend of $0.10 per share. The ex-dividend date is Wednesday, October 28th. This represents a $0.40 dividend on an annualized basis and a yield of 0.3%. Entegris's payout ratio is 15.63%.

Insider Buying and Selling

In related news, SVP Joseph Colella sold 3,916 shares of the company's stock in a transaction dated Thursday, August 13th. The shares were sold at an average price of $164.48, for a total transaction of $644,103.68. Following the transaction, the senior vice president directly owned 50,297 shares in the company, valued at approximately $8,272,850.56. This represents a 7.22% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, SVP Susan Rice sold 2,062 shares of the business's stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $149.52, for a total value of $308,310.24. Following the transaction, the senior vice president owned 66,976 shares of the company's stock, valued at approximately $10,014,251.52. The trade was a 2.99% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 7,978 shares of company stock valued at $1,273,734. Company insiders own 0.53% of the company's stock.

About Entegris

Entegris, Inc supplies advanced materials and process solutions used in semiconductor manufacturing and other high-technology industries. Its products help customers control contamination and manage materials throughout complex manufacturing processes.

The company's offerings include specialty chemicals and gases, filtration and purification systems, fluid and gas handling products, and wafer handling and storage solutions. Entegris also provides related services and technologies designed to support the production of semiconductor devices and other advanced products.

Entegris serves customers around the world, with operations and support across the Americas, Asia and Europe.

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