Emerald (NYSE:EEX) Shares Gap Up Following Dividend Announcement

Emerald Holding, Inc. (NYSE:EEX) gapped up before the market opened on Monday following a dividend announcement from the company. The stock had previously closed at $4.57, but opened at $5.05. Emerald shares last traded at $5.0050, with a volume of 228,988 shares changing hands.

The newly announced dividend which will be paid on Monday, June 1st. Investors of record on Thursday, May 21st will be given a dividend of $0.015 per share. This represents a $0.06 annualized dividend and a yield of 1.2%. The ex-dividend date is Thursday, May 21st. Emerald’s dividend payout ratio (DPR) is currently -40.00%.

Wall Street Analysts Forecast Growth

Several analysts recently commented on the stock. Maxim Group restated a “hold” rating on shares of Emerald in a research report on Monday. Rosenblatt Securities restated a “neutral” rating and set a $5.03 price target (down from $7.70) on shares of Emerald in a research report on Tuesday. Finally, Weiss Ratings restated a “sell (d)” rating on shares of Emerald in a research report on Friday. Two investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and a consensus target price of $5.03.

Emerald Trading Up 0.1%

The company’s 50-day moving average price is $4.58 and its 200-day moving average price is $4.46. The firm has a market cap of $988.56 million, a price-to-earnings ratio of -26.29 and a beta of 0.55. The company has a quick ratio of 0.82, a current ratio of 0.82 and a debt-to-equity ratio of 1.47.

Emerald (NYSE:EEX) last announced its earnings results on Monday, May 11th. The company reported $0.04 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.10 by ($0.06). Emerald had a negative net margin of 8.24% and a negative return on equity of 10.60%. The company had revenue of $155.40 million during the quarter, compared to analyst estimates of $155.40 million.

Key Stories Impacting Emerald

Here are the key news stories impacting Emerald this week:

• Positive Sentiment: Emerald agreed to be acquired by Apollo-managed funds in a cash deal valued at about $1.5 billion, with shareholders expected to receive $5.03 per share. That takeover premium has been the main catalyst supporting the stock. Emerald Expositions to Be Acquired by Apollo Funds
• Positive Sentiment: The company also declared a quarterly dividend of $0.015 per share, which may appeal to income-focused investors while the transaction is pending.
• Neutral Sentiment: Emerald reported quarterly revenue of $155.4 million, above expectations, but EPS of $0.04 missed the $0.11 consensus. The mixed results do not materially change the M&A-driven narrative. EEX earnings snapshot
• Negative Sentiment: Rosenblatt Securities reaffirmed a neutral rating but cut its price target to $5.03 from $7.70, implying only a small upside from the current trading level.
• Negative Sentiment: Maxim Group reiterated a hold rating and another report called the stock a downgrade, reinforcing the view that limited near-term upside remains after the deal announcement.
• Negative Sentiment: Multiple shareholder-investigation notices have emerged questioning whether the Apollo deal offers a fair price, which could create legal overhang and investor caution.

Institutional Trading of Emerald

Several institutional investors have recently modified their holdings of the stock. Advisory Research Inc. grew its position in shares of Emerald by 0.7% in the fourth quarter. Advisory Research Inc. now owns 1,789,157 shares of the company’s stock valued at $7,998,000 after purchasing an additional 13,015 shares during the period. MSD Partners L.P. grew its position in shares of Emerald by 31.3% in the fourth quarter. MSD Partners L.P. now owns 1,400,339 shares of the company’s stock valued at $6,260,000 after purchasing an additional 333,701 shares during the period. Contrarian Capital Management L.L.C. grew its position in shares of Emerald by 12.1% in the third quarter. Contrarian Capital Management L.L.C. now owns 879,000 shares of the company’s stock valued at $4,474,000 after purchasing an additional 95,138 shares during the period. State Street Corp grew its position in shares of Emerald by 1.0% in the fourth quarter. State Street Corp now owns 241,698 shares of the company’s stock valued at $1,080,000 after purchasing an additional 2,394 shares during the period. Finally, Inspire Investing LLC grew its position in shares of Emerald by 3.6% in the first quarter. Inspire Investing LLC now owns 110,725 shares of the company’s stock valued at $499,000 after purchasing an additional 3,857 shares during the period. Institutional investors and hedge funds own 14.90% of the company’s stock.

About Emerald

Emerald (NYSE: EEX) is a global provider of independent data, news and analytics for commodity, financial and energy markets. The company operates digital platforms that deliver real-time and historical price assessments, market commentary, research reports and risk-management tools. Its subscriber base spans traders, asset managers, corporate hedgers and financial institutions seeking timely intelligence to support trading, risk management and investment decisions.

Serving clients across North America, Europe and Asia-Pacific, Emerald covers a broad range of markets including metals, energy products, agriculture, freight, environmental emissions and treasury benchmarks.