Climb Global Solutions (NASDAQ:CLMB) Shares Gap Up After Strong Earnings

Key Points

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Climb Global Solutions, Inc. (NASDAQ:CLMB - Get Free Report) shares gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $101.54, but opened at $113.00. Climb Global Solutions shares last traded at $112.00, with a volume of 25,290 shares.

The company reported $1.39 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.90 by $0.49. Climb Global Solutions had a return on equity of 30.27% and a net margin of 3.82%. The firm had revenue of $159.28 million for the quarter, compared to the consensus estimate of $113.25 million.

Climb Global Solutions Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, August 15th. Stockholders of record on Monday, August 11th will be given a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 0.6%. The ex-dividend date of this dividend is Monday, August 11th. Climb Global Solutions's dividend payout ratio is currently 14.11%.

Wall Street Analyst Weigh In

Separately, Barrington Research reaffirmed an "outperform" rating and set a $136.00 price objective on shares of Climb Global Solutions in a research report on Friday, July 25th.

Insider Activity

In other news, Director Greg Scorziello sold 5,767 shares of the company's stock in a transaction dated Monday, May 5th. The stock was sold at an average price of $100.63, for a total transaction of $580,333.21. Following the completion of the transaction, the director directly owned 1,774 shares of the company's stock, valued at approximately $178,517.62. This represents a 76.48% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 6.10% of the company's stock.

Institutional Trading of Climb Global Solutions

A number of large investors have recently made changes to their positions in the company. Vanguard Group Inc. boosted its position in shares of Climb Global Solutions by 3.3% in the 1st quarter. Vanguard Group Inc. now owns 240,449 shares of the company's stock valued at $26,632,000 after purchasing an additional 7,737 shares during the period. De Lisle Partners LLP boosted its position in shares of Climb Global Solutions by 8.4% in the 1st quarter. De Lisle Partners LLP now owns 224,588 shares of the company's stock valued at $24,822,000 after purchasing an additional 17,308 shares during the period. Wasatch Advisors LP boosted its position in shares of Climb Global Solutions by 1.4% in the 4th quarter. Wasatch Advisors LP now owns 122,723 shares of the company's stock valued at $15,555,000 after purchasing an additional 1,645 shares during the period. Invesco Ltd. boosted its position in shares of Climb Global Solutions by 11.5% in the 4th quarter. Invesco Ltd. now owns 95,199 shares of the company's stock valued at $12,066,000 after purchasing an additional 9,853 shares during the period. Finally, Northern Trust Corp boosted its position in shares of Climb Global Solutions by 0.3% in the 4th quarter. Northern Trust Corp now owns 48,768 shares of the company's stock valued at $6,181,000 after purchasing an additional 137 shares during the period. 49.72% of the stock is owned by institutional investors and hedge funds.

Climb Global Solutions Stock Performance

The business has a 50-day moving average of $105.70 and a 200-day moving average of $112.28. The stock has a market capitalization of $511.97 million, a price-to-earnings ratio of 23.08, a PEG ratio of 1.91 and a beta of 0.95.

About Climb Global Solutions

Climb Global Solutions Inc operates as a value-added information technology (IT) distribution and solutions company in the United States, Canada, Europe, the United Kingdom, and internationally. It operates in two segments, Distribution and Solutions. The company distributes technical software to corporate and value-added resellers, consultants, and systems integrators under the name Climb Channel Solutions; and provides cloud solutions and resells software, hardware, and services under the name Grey Matter.