Stellantis Stock Trades Higher on Improved Shareholder Returns After Solid Year
By David Sachs
Stellantis shares rose Thursday after the Jeep and Dodge maker set out new rewards for shareholders after posting record revenue and cash flow last year.
At 0905 GMT, shares in the Netherlands-based company were up 3% to EUR23.25 after rising as high as EUR23.68.
Stellantis said Thursday that it will offer a buyback of 3 billion euros ($3.22 billion) this year. The announcement came after a 6% jump in revenue last year to EUR189.54 billion and a 19% rise in industrial free cash flow compared with 2022. The results for both line items represented company records, Stellantis said.
"The opportunity to initiate the buyback program stems from the company's significant cash flow generation and strong balance sheet," Stellantis said.
The company also proposed to raise its dividend 16% to EUR1.55 per share.
The company's results were solid, but guidance for 2024--double-digit adjusted operating margins, positive free cash flow, and a positive revenue backdrop--were vague and could slow consensus upgrades, Bernstein analysts said in a note. In a separate note, Citi analysts said expectations for buybacks and earnings are very high.
Write to David Sachs at david.sachs@wsj.com
(END) Dow Jones Newswires
February 15, 2024 04:22 ET (09:22 GMT)
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