Gamma Communications (LON:GAMA) Stock Price Down 0.5% - Here's Why

Shares of Gamma Communications plc (LON:GAMA - Get Free Report) fell 0.5% during mid-day trading on Wednesday . The company traded as low as GBX 1,274 ($16.92) and last traded at GBX 1,304 ($17.32). 1,040,871 shares traded hands during mid-day trading, an increase of 53% from the average session volume of 681,995 shares. The stock had previously closed at GBX 1,310 ($17.40).

Analysts Set New Price Targets

A number of brokerages have issued reports on GAMA. Berenberg Bank upped their price objective on shares of Gamma Communications from GBX 1,900 ($25.24) to GBX 2,000 ($26.57) and gave the stock a "buy" rating in a research report on Tuesday, April 8th. Shore Capital reissued a "buy" rating on shares of Gamma Communications in a research report on Friday, May 2nd.

Gamma Communications Stock Up 4.1%

The stock's 50-day moving average price is GBX 1,257.31 and its two-hundred day moving average price is GBX 1,396.91. The stock has a market capitalization of £1.12 billion, a P/E ratio of 20.05, a P/E/G ratio of 2.79 and a beta of 0.82. The company has a current ratio of 2.78, a quick ratio of 2.45 and a debt-to-equity ratio of 2.08.

Gamma Communications (LON:GAMA - Get Free Report) last released its earnings results on Tuesday, March 25th. The company reported GBX 85.10 ($1.13) earnings per share for the quarter. Gamma Communications had a net margin of 10.29% and a return on equity of 16.09%. As a group, research analysts expect that Gamma Communications plc will post 89.6398892 earnings per share for the current fiscal year.

Gamma Communications Increases Dividend

The firm also recently declared a dividend, which will be paid on Thursday, June 19th. Investors of record on Thursday, May 29th will be paid a dividend of GBX 13 ($0.17) per share. This is a boost from Gamma Communications's previous dividend of $6.50. This represents a dividend yield of 1.03%. The ex-dividend date of this dividend is Thursday, May 29th. Gamma Communications's dividend payout ratio is presently 30.70%.

Gamma Communications Company Profile

Gamma Communications plc, together with its subsidiaries, engages in the provision of technology-based communications and software services for small, medium, and large sized to businesses in Western Europe. The company offers Unified Communications as a Service products for enabling businesses to raise productivity, boost agility, and increase collaboration; Contact Centre as a Service, through a software platform that allows contact centres to operate over the internet for SMEs and Enterprise; and Direct Routing and Operator Connect services, designed to enable seamless and integrated calling between Teams and the local telephony infrastructure.