Share repurchase and slimming down Bullish for MASCO CORP
Entry level $47.65 = Target price $54.50 = Stop loss $45.00
Breakout trade opportunity
As part of "strategic alternatives" for cabinetry and window businesses announced in March 2019, Masco Corporation (MAS - Free Report) announced that it has entered into a definitive agreement with ACProducts, Inc. to sell Masco Cabinetry for $1 billion, which consists of $850 million in cash at closing.
In July 2019, the company revealed its plan of pursuing the sale of these businesses that include well-known brands such as Merillat, KraftMaid and Milgard. In this regard, on Nov 7, the company announced the completion of the proposed sale of Milgard Windows and Doors to MI Windows and Doors LLC for approximately $725 million. Source Zacks
Masco Corporation (MAS +0.4%) has entered into an accelerated share repurchase agreement with Royal Bank of Canada to repurchase $400M of the company's common stock.
As per the ASR agreement, Masco will receive initial delivery of 7.3M shares on November 26, 2019, representing ~85% of the number of shares of common stock initially underlying the ASR agreement.
The transaction is expected to be completed no later than February 12, 2020. Source seeking Alpha
P/E ratio 18.63 very reasonable
Masco Corp. engages in the design, manufacture, marketing and distribution of branded home improvement and building products. It operates through the following business segments: Plumbing Products, Decorative Architectural Products, Cabinetry Products, and Windows & Other Specialty Products. The Plumbing Products segment includes faucets; plumbing fittings and valves; showerheads and hand showers; bathtubs and shower enclosures; toilets; spas, and exercise pools. The Decorative Architectural Products segment offers paints and coating products; and cabinet, door, window, and other hardware. The Cabinetry Products segment comprises of assembled kitchen and bath cabinets; home office workstations; entertainment centers, and storage products. The Windows & Other Specialty Products segment consists of windows; window frame components; patio doors; staple gun tackers; staples, and fastening tools. The company was founded by Alex Manoogian in 1929 and is headquartered in Taylor, MI.
Breakout trade opportunity
As part of "strategic alternatives" for cabinetry and window businesses announced in March 2019, Masco Corporation (MAS - Free Report) announced that it has entered into a definitive agreement with ACProducts, Inc. to sell Masco Cabinetry for $1 billion, which consists of $850 million in cash at closing.
In July 2019, the company revealed its plan of pursuing the sale of these businesses that include well-known brands such as Merillat, KraftMaid and Milgard. In this regard, on Nov 7, the company announced the completion of the proposed sale of Milgard Windows and Doors to MI Windows and Doors LLC for approximately $725 million. Source Zacks
Masco Corporation (MAS +0.4%) has entered into an accelerated share repurchase agreement with Royal Bank of Canada to repurchase $400M of the company's common stock.
As per the ASR agreement, Masco will receive initial delivery of 7.3M shares on November 26, 2019, representing ~85% of the number of shares of common stock initially underlying the ASR agreement.
The transaction is expected to be completed no later than February 12, 2020. Source seeking Alpha
P/E ratio 18.63 very reasonable
Masco Corp. engages in the design, manufacture, marketing and distribution of branded home improvement and building products. It operates through the following business segments: Plumbing Products, Decorative Architectural Products, Cabinetry Products, and Windows & Other Specialty Products. The Plumbing Products segment includes faucets; plumbing fittings and valves; showerheads and hand showers; bathtubs and shower enclosures; toilets; spas, and exercise pools. The Decorative Architectural Products segment offers paints and coating products; and cabinet, door, window, and other hardware. The Cabinetry Products segment comprises of assembled kitchen and bath cabinets; home office workstations; entertainment centers, and storage products. The Windows & Other Specialty Products segment consists of windows; window frame components; patio doors; staple gun tackers; staples, and fastening tools. The company was founded by Alex Manoogian in 1929 and is headquartered in Taylor, MI.