On August 11, Duke declined 3.05% in regular trading, trading at $121.105/share, with turnover of $642 million. The decline was triggered by the company's announcement of a $1.75 billion equity unit offering, raising market concerns over share dilution.
Duke priced a public offering of 35 million equity units at $50 each. Each equity unit consists of a contract to purchase Duke common stock in the future and two 1/40 undivided beneficial ownership interests in remarketable senior notes with $1,000 principal each. Underwriters were granted an option to purchase an additional 5 million corporate units. The company intends to use net proceeds to redeem and pay down debt and for general corporate purposes.
On the fundamental side, the company reported Q2 adjusted EPS of $1.43, beating the $1.30 consensus estimate by 9.16% and representing a 14.4% year-over-year increase. Duke reaffirmed full-year adjusted EPS guidance of $6.55 to $6.80. Multiple investment banks recently raised price targets, with the average target at approximately $138.78, maintaining overweight ratings.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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