Acushnet (NYSE:GOLF) to Issue $0.26 Quarterly Dividend

Key Points

• Acushnet declared a quarterly dividend of $0.255 per share, payable September 18 to shareholders of record on September 4. The dividend implies an annualized payout of approximately $1.02 per share and a 1.1% yield.
• The company has raised its dividend for eight consecutive years, with a 29.7% payout ratio. Analysts expect the dividend to remain well covered, with a projected future payout ratio of 24.8%.
• Acushnet reported strong quarterly results, earning $2.08 per share versus the $1.63 consensus estimate and generating $819.95 million in revenue, up 13.8% year over year. Despite the earnings beat, shares were trading down 8.6%, while analysts maintained an overall “Hold” rating.

Acushnet (NYSE:GOLF - Get Free Report) announced a quarterly dividend on Thursday, August 6th. Investors of record on Friday, September 4th will be given a dividend of 0.255 per share on Friday, September 18th. This represents a c) dividend on an annualized basis and a yield of 1.1%. The ex-dividend date is Friday, September 4th.

Acushnet has raised its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 8 consecutive years. Acushnet has a payout ratio of 29.7% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Acushnet to earn $4.12 per share next year, which means the company should continue to be able to cover its $1.02 annual dividend with an expected future payout ratio of 24.8%.

Acushnet Trading Down 8.6%

NYSE GOLF opened at $94.27 on Friday. The firm has a market capitalization of $5.52 billion, a price-to-earnings ratio of 33.19 and a beta of 0.81. The company has a debt-to-equity ratio of 1.36, a quick ratio of 1.59 and a current ratio of 2.87. Acushnet has a one year low of $73.09 and a one year high of $119.65. The company's 50 day moving average price is $105.03 and its 200 day moving average price is $98.59.

Acushnet (NYSE:GOLF - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $2.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.63 by $0.45. Acushnet had a net margin of 6.54% and a return on equity of 22.95%. The company had revenue of $819.95 million during the quarter, compared to the consensus estimate of $788.24 million. During the same period in the previous year, the firm earned $1.25 earnings per share. Acushnet's revenue for the quarter was up 13.8% on a year-over-year basis. On average, sell-side analysts predict that Acushnet will post 3.75 EPS for the current year.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on GOLF. Roth Capital set a $87.00 price objective on shares of Acushnet in a research report on Thursday, May 7th. Truist Financial lifted their price target on Acushnet from $95.00 to $97.00 and gave the stock a "hold" rating in a research note on Tuesday, May 19th. JPMorgan Chase & Co. upped their price objective on Acushnet from $96.00 to $118.00 and gave the company a "neutral" rating in a research note on Friday, June 26th. Finally, Weiss Ratings upgraded Acushnet from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, July 24th. One analyst has rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $97.83.

About Acushnet

Acushnet Holdings Corp., traded on the NYSE under the symbol GOLF, is a leading designer, manufacturer and marketer of golf equipment, footwear, apparel and accessories. The company's portfolio encompasses a range of golf lifestyle products, with a focus on innovation, performance and quality for players of all skill levels.

At the core of Acushnet's product lineup is the Titleist brand, globally recognized for its Tour-level golf balls and precision-engineered clubs. FootJoy offers golf shoes, gloves and apparel that blend comfort, style and technical performance, while Scotty Cameron putters and Vokey design wedges cater to players seeking exacting standards in feel and accuracy.

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