ARKO Corp. (NASDAQ:ARKO) Shareholders to Collect $0.03 Quarterly Dividend

Key Points

• ARKO declared a quarterly dividend of $0.03 per share, payable December 3 to shareholders of record November 20. That equates to an annualized dividend of $0.12 and a 3.1% yield.
• The dividend currently exceeds earnings, with a reported payout ratio of 300%; analysts’ expected earnings imply a lower 92.3% payout ratio next year.
• ARKO reported quarterly EPS of $0.08, missing the $0.12 consensus estimate, despite revenue of $2.39 billion topping expectations. Shares fell $0.18 to $3.86 in Thursday trading.

ARKO Corp. (NASDAQ:ARKO - Get Free Report) declared a quarterly dividend on Thursday, November 5th. Shareholders of record on Friday, November 20th will be given a dividend of $0.03 per share on Thursday, December 3rd. This represents a $0.12 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend is Friday, November 20th.

ARKO has a payout ratio of 300.0% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect ARKO to earn $0.13 per share next year, which means the company should continue to be able to cover its $0.12 annual dividend with an expected future payout ratio of 92.3%.

ARKO Stock Performance

Shares of NASDAQ ARKO traded down $0.18 during trading on Thursday, reaching $3.86. 1,146,895 shares of the company traded hands, compared to its average volume of 823,241. The firm has a 50 day simple moving average of $4.22 and a 200-day simple moving average of $5.96. The company has a quick ratio of 1.15, a current ratio of 1.60 and a debt-to-equity ratio of 1.82. The stock has a market capitalization of $433.05 million, a PE ratio of 55.14 and a beta of 0.99. ARKO has a 52-week low of $3.61 and a 52-week high of $8.76.

ARKO (NASDAQ:ARKO - Get Free Report) last released its quarterly earnings data on Thursday, November 5th. The company reported $0.08 earnings per share for the quarter, missing the consensus estimate of $0.12 by ($0.04). The company had revenue of $2.39 billion for the quarter, compared to analysts' expectations of $2.02 billion. ARKO had a net margin of 0.19% and a return on equity of 4.02%. Equities research analysts anticipate that ARKO will post 0.11 earnings per share for the current year.

Hedge Funds Weigh In On ARKO

Institutional investors and hedge funds have recently made changes to their positions in the business. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT raised its holdings in ARKO by 26.5% in the 3rd quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT now owns 1,075,000 shares of the company's stock worth $4,429,000 after purchasing an additional 225,000 shares during the period. Engineers Gate Manager LP lifted its position in ARKO by 46.5% during the second quarter. Engineers Gate Manager LP now owns 101,499 shares of the company's stock valued at $815,000 after purchasing an additional 32,204 shares in the last quarter. Squarepoint Ops LLC bought a new stake in ARKO during the second quarter valued at about $174,000. Ancora Advisors LLC grew its holdings in ARKO by 23.0% during the second quarter. Ancora Advisors LLC now owns 719,960 shares of the company's stock valued at $5,781,000 after purchasing an additional 134,682 shares during the period. Finally, Empowered Funds LLC bought a new stake in ARKO during the second quarter valued at about $4,671,000. Hedge funds and other institutional investors own 78.29% of the company's stock.

ARKO Company Profile

ARKO Corp. NASDAQ: ARKO is a convenience store and fuel retail operator in the United States. Through its subsidiary GPM Investments, the company operates convenience stores that sell gasoline, diesel fuel, food, beverages, tobacco products, and other everyday consumer goods. Many locations also offer prepared food, loyalty programs, and additional retail services.

ARKO operates stores under a variety of regional and national banners, including fas mart, E-Z Mart, Scotchman, Young's, Li'l Cricket, BreadBox, and others.

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