HB Fuller Board Approves $200 Million Share Repurchase Program
HB Fuller’s new share repurchase program
On April 6, 2017, HB Fuller (FUL) announced a new share repurchase program. FUL’s board of directors approved a share repurchase program of up to $200 million of the company’s outstanding common shares over five years. The new share repurchase program will replace FUL’s previous share repurchase authorization that was approved in September 2010.
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The new share repurchase program will allow FUL to buy the ordinary shares from the market within the five-year window. However, the program can be modified at any time without prior notice.
HB Fuller stock performance
On April 7, 2017, FUL closed at $50.66, falling 1.7% for the week. Despite this loss, it was trading 2.4% above its 100-day moving average of $49.45, indicating an upward trend. Analysts expect FUL’s 12-month target price to be $54.50, which implies a potential return of 7.6% from the closing price of $50.66 on April 7, 2017. On a year-to-date basis, the stock has risen 4.9%.
Its 14-day RSI (relative strength index) of 50 indicates that the stock is neither overbought nor oversold. An RSI of 70 and above indicates that a stock is overbought, while an RSI of 30 and below indicates that a stock is oversold.
The PowerShares DWA Basic Materials Momentum ETF (PYZ), which holds 1.6% in FUL as of April 7, 2017, outperformed FUL with a gain of 0.3% for the week to close at $62.01. The top holdings of the fund include Chemours (CC), FMC (FMC), and International Paper (IP) with weights of 4.9%, 5.0%, and 4.4%, respectively.