SASKATOON, Saskatchewan - Nutrien Ltd. (TSX:NYSE:NTR, NYSE:NTR), a major player in the global agriculture sector with a market capitalization of $26.15 billion, has received approval from the Toronto Stock Exchange to launch a normal course issuer bid (NCIB) to repurchase up to 5% of its outstanding common shares. According to InvestingPro data, the company maintains a FAIR financial health score and has consistently raised its dividend for seven consecutive years, currently offering a 4.07% yield. The buyback initiative, which will also extend to purchases made on the New York Stock Exchange and alternative trading systems, is seen as an attractive investment opportunity by the company and aligns with its strategy to return capital to shareholders over time. InvestingPro analysis indicates the stock is currently undervalued based on its Fair Value calculations, with analysts maintaining a bullish outlook and setting price targets up to $70 per share.
As of February 18, 2025, Nutrien had 489,258,826 common shares issued and outstanding, which allows the company to buy back up to 24,462,941 common shares. The repurchased shares will be cancelled, contributing to a reduction in the overall share count.
The NCIB is set to commence on March 3, 2025, and will run until the earlier of March 2, 2026, the date Nutrien has repurchased the maximum allowable shares, or the company decides to discontinue further repurchases. The company’s automatic purchase plan with a broker enables Nutrien to buy shares during self-imposed blackout periods, while purchases outside these periods will be at management’s discretion.
Transactions will be subject to daily purchase volume restrictions, with a cap of 25% of the average daily trading volume on the TSX, based on a six-month period ending January 31, 2025. Nutrien may also conduct purchases through private agreements at a discount to the market price, in accordance with issuer bid exemption orders issued by securities regulatory authorities.
The announcement follows the nearing completion of Nutrien’s previous NCIB, which will expire on February 28, 2025, and under which the company has repurchased 5,832,440 common shares at a weighted-average price of US$48.44 per share, totaling approximately US$282.5 million.
Nutrien, recognized for its extensive network in production, distribution, and agricultural retail, is focused on creating long-term value and maintaining a strong position in the agricultural value chain. This share buyback program is based on a press release statement and reflects the company’s confidence in its financial health and future prospects. InvestingPro subscribers can access 8 additional ProTips and a comprehensive Pro Research Report, which provides deep-dive analysis of Nutrien’s financial metrics, growth prospects, and industry position among 1,400+ top US stocks.
In other recent news, Nutrien has reported a fourth-quarter EBITDA of $1.06 billion, surpassing analyst estimates from Morgan Stanley USA and Bloomberg. The company’s earnings per share for the same period were $0.31, which marked a 16% decline year-over-year and fell short of expectations. Nutrien’s Retail and nitrogen segments outperformed, while its potash, phosphate, and corporate segments underperformed. Barclays (LON:BARC) downgraded Nutrien’s stock rating from Overweight to Equal Weight, citing balanced risks amid global supply constraints, while Piper Sandler upgraded the stock to Overweight due to an improved outlook for grain prices.
Additionally, JPMorgan upgraded Nutrien’s stock from Underweight to Neutral, reflecting stronger agricultural fundamentals and a positive demand outlook for crop chemicals. In the potash market, a production cut by Belaruskali is expected to support higher potash prices, potentially benefiting Nutrien. Mizuho raised Nutrien’s stock price target to $55, maintaining a Neutral rating, following the company’s earnings report. Nutrien’s future projections include flat potash volume and slight increases in nitrogen and phosphate sales, as well as a rise in Retail EBITDA.
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