Mondelez Approves $4B Share Buyback Plan; Street Is Bullish

Mondelez International approved a share buyback program of $4 billion, which is in addition to the existing buyback plan of $2 billion. The confectionery company’s board extended the existing share repurchase program by an additional three years to Dec. 31, 2023.

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Concurrently, Mondelez (MDLZ) declared a regular quarterly dividend of $0.315 per share. This represents an annual dividend of $1.26 per share with a dividend yield of 2.2%. The company will pay the dividend on Jan. 14 to shareholders of record date as of Dec. 31.

Last month, Mondelez reported better-than-expected 3Q results, as its revenue grew 4.9% year-over-year to $6.67 billion, topping analysts’ estimates of $6.49 billion. The company’s adjusted EPS of $0.63 declined 1.6% but beat analysts’ expectations of $0.62. (See MDLZ stock analysis on TipRanks)

On Nov. 18, Citigroup analyst Wendy Nicholson initiated coverage on the stock with a Buy rating and a price target of $68 (17% upside potential). The analyst sees upside in the stock from current share levels and believes that Mondelez has emerged as a global leader in snacking with nine global brands. She further believes that the company will easily overcome the pandemic.

Meanwhile, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 9 Buys and 1 Hold. The average price target stands at $64.70 and implies upside potential of about 11.3% to current levels. Shares have gained 5.6% year-to-date.