Emerald (NYSE:EEX) Shares Gap Down - What's Next?

Key Points

• Shares of Emerald (NYSE:EEX) gapped down premarket from a $5.02 close to a $4.64 open and were last trading around $4.75 on very light volume (1,312 shares).
• Emerald missed on earnings—reported EPS of ($0.15) vs. a $0.04 estimate—while revenue of $132.7M slightly beat expectations; the company shows negative profitability (net margin -6.62%, ROE -8.24%), a negative P/E, a current ratio of 0.82 and debt-to-equity of 1.47.
• Analyst sentiment is mixed: Rosenblatt reiterated a buy with a $7.70 target but the consensus is a "Hold," and the company pays a small quarterly dividend ($0.015, ~1.3% yield) with roughly 14.9% institutional ownership.

Shares of Emerald Holding, Inc. (NYSE:EEX - Get Free Report) gapped down prior to trading on Thursday . The stock had previously closed at $5.02, but opened at $4.64. Emerald shares last traded at $4.75, with a volume of 1,312 shares.

Analyst Ratings Changes

Separately, Rosenblatt Securities reiterated a "buy" rating and issued a $7.70 price target on shares of Emerald in a report on Monday, March 16th. One investment analyst has rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $7.70.

Emerald Stock Up 1.0%

The company has a current ratio of 0.82, a quick ratio of 0.82 and a debt-to-equity ratio of 1.47. The stock has a market capitalization of $941.06 million, a P/E ratio of -31.70 and a beta of 0.57. The business has a 50-day moving average price of $4.54 and a 200 day moving average price of $4.46.

Emerald (NYSE:EEX - Get Free Report) last posted its earnings results on Friday, March 13th. The company reported ($0.15) EPS for the quarter, missing analysts' consensus estimates of $0.04 by ($0.19). The firm had revenue of $132.70 million for the quarter, compared to the consensus estimate of $131.00 million. Emerald had a negative net margin of 6.62% and a negative return on equity of 8.24%.

Emerald Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, April 2nd. Stockholders of record on Monday, March 23rd were given a dividend of $0.015 per share. This represents a $0.06 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date was Monday, March 23rd. Emerald's dividend payout ratio is currently -40.00%.

Institutional Trading of Emerald

A number of institutional investors have recently bought and sold shares of the stock. State of Alaska Department of Revenue purchased a new position in shares of Emerald during the 3rd quarter worth about $31,000. Russell Investments Group Ltd. boosted its stake in shares of Emerald by 127.0% during the 4th quarter. Russell Investments Group Ltd. now owns 6,957 shares of the company's stock worth $31,000 after purchasing an additional 3,892 shares during the period. Abel Hall LLC purchased a new position in shares of Emerald during the 1st quarter worth about $48,000. Ritholtz Wealth Management purchased a new position in shares of Emerald during the 4th quarter worth about $67,000. Finally, Wells Fargo & Company MN boosted its stake in shares of Emerald by 79.0% during the 4th quarter. Wells Fargo & Company MN now owns 15,308 shares of the company's stock worth $68,000 after purchasing an additional 6,756 shares during the period. 14.90% of the stock is currently owned by institutional investors.

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.

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