Columbus McKinnon Corporation (NASDAQ:CMCO) to Issue Quarterly Dividend of $0.07

Key Points

• Declared quarterly dividend of $0.07 per share, payable May 11 to holders of record on May 1 (ex-dividend May 1), implying a $0.28 annual payout and roughly a 1.9% yield with a low payout ratio (~9.5%) that suggests earnings comfortably cover the dividend.
• Latest quarter beat expectations with $0.62 EPS (vs. $0.61 est.) and revenue of $258.7M (vs. $241.6M), up 10.5% year-over-year; analysts forecast about $2.69 EPS for the current year and $2.95 next year.
• Insider Jon Adams sold 5,185 shares (reducing his stake ~35.6%), while institutional and hedge fund ownership is very high at about 95.96% of the company’s stock.

Columbus McKinnon Corporation (NASDAQ:CMCO - Get Free Report) declared a quarterly dividend on Monday, March 23rd. Investors of record on Friday, May 1st will be paid a dividend of 0.07 per share by the industrial products company on Monday, May 11th. This represents a c) annualized dividend and a dividend yield of 1.9%. The ex-dividend date is Friday, May 1st.

Columbus McKinnon has increased its dividend by an average of 0.0%annually over the last three years. Columbus McKinnon has a dividend payout ratio of 9.5% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Columbus McKinnon to earn $2.95 per share next year, which means the company should continue to be able to cover its $0.28 annual dividend with an expected future payout ratio of 9.5%.

Columbus McKinnon Stock Performance

NASDAQ CMCO opened at $14.54 on Tuesday. The stock has a market capitalization of $417.88 million, a price-to-earnings ratio of 69.24 and a beta of 1.32. Columbus McKinnon has a twelve month low of $11.78 and a twelve month high of $24.40. The company has a current ratio of 1.83, a quick ratio of 0.99 and a debt-to-equity ratio of 0.43. The stock has a 50-day moving average of $19.18 and a 200 day moving average of $17.15.

Columbus McKinnon (NASDAQ:CMCO - Get Free Report) last announced its earnings results on Monday, February 9th. The industrial products company reported $0.62 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.01. Columbus McKinnon had a return on equity of 7.41% and a net margin of 0.60%.The business had revenue of $258.66 million during the quarter, compared to the consensus estimate of $241.60 million. During the same period in the prior year, the company posted $0.56 EPS. The business's quarterly revenue was up 10.5% on a year-over-year basis. Sell-side analysts anticipate that Columbus McKinnon will post 2.69 EPS for the current fiscal year.

Insiders Place Their Bets

In other Columbus McKinnon news, insider Jon Adams sold 5,185 shares of the company's stock in a transaction on Wednesday, February 11th. The stock was sold at an average price of $23.28, for a total value of $120,706.80. Following the completion of the sale, the insider directly owned 9,366 shares in the company, valued at $218,040.48. This represents a 35.63% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 2.26% of the company's stock.

Hedge Funds Weigh In On Columbus McKinnon

Institutional investors have recently bought and sold shares of the company. EverSource Wealth Advisors LLC increased its holdings in shares of Columbus McKinnon by 48.0% during the 4th quarter. EverSource Wealth Advisors LLC now owns 1,741 shares of the industrial products company's stock worth $30,000 after buying an additional 565 shares during the last quarter. Group One Trading LLC lifted its stake in shares of Columbus McKinnon by 266.7% in the 3rd quarter. Group One Trading LLC now owns 2,200 shares of the industrial products company's stock valued at $32,000 after purchasing an additional 1,600 shares during the last quarter. Wilmington Savings Fund Society FSB grew its holdings in shares of Columbus McKinnon by 66.7% during the 3rd quarter. Wilmington Savings Fund Society FSB now owns 2,500 shares of the industrial products company's stock worth $36,000 after purchasing an additional 1,000 shares during the period. Tower Research Capital LLC TRC increased its position in shares of Columbus McKinnon by 267.8% during the 2nd quarter. Tower Research Capital LLC TRC now owns 2,600 shares of the industrial products company's stock worth $40,000 after purchasing an additional 1,893 shares during the last quarter. Finally, Royal Bank of Canada lifted its position in Columbus McKinnon by 41.4% in the fourth quarter. Royal Bank of Canada now owns 3,136 shares of the industrial products company's stock valued at $54,000 after buying an additional 918 shares during the last quarter. 95.96% of the stock is owned by hedge funds and other institutional investors.

About Columbus McKinnon

Columbus McKinnon Corporation is a global designer, manufacturer and marketer of material handling systems and solutions. The company's product portfolio spans electric and manual hoists, motorized and manual chain and wire rope hoists, end-of-arm tooling, rigging hardware, trolleys and controls. Through its brands, Columbus McKinnon serves customers across a wide range of end markets including manufacturing, warehousing, construction, and energy, providing equipment for lifting, positioning and flow control applications.

With a focus on safety and productivity, Columbus McKinnon integrates advanced technologies such as automation controls, digital load monitoring and Internet-of-Things connectivity into its hoist and crane systems.

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