Global Partners LP (NYSE:GLP) Raises Dividend to $0.75 Per Share

Key Points

• Global Partners LP has announced a quarterly dividend of $0.75 per share, marking a 0.7% increase from the previous quarter, with a yield of 5.75%.
• The company's dividend payout ratio is currently 98.3%, but it is projected to exceed earnings next year, leading to concerns about future sustainability.
• Global Partners reported $0.36 earnings per share for the last quarter, outperforming estimates, but noted revenue was below expectations at $4.59 billion.
• Insider trading activity includes COO Mark Romaine selling 7,119 shares, reducing his ownership by 4.52%, while hedge funds now own over 38% of the company's stock.

Global Partners LP (NYSE:GLP - Get Free Report) announced a quarterly dividend on Friday, July 25th, RTT News reports. Shareholders of record on Friday, August 8th will be paid a dividend of 0.75 per share by the energy company on Thursday, August 14th. This represents a $3.00 dividend on an annualized basis and a yield of 5.75%. This is a 0.7% increase from Global Partners's previous quarterly dividend of $0.75.

Global Partners has a dividend payout ratio of 98.3% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings fall. Equities research analysts expect Global Partners to earn $2.51 per share next year, which means the company may not be able to cover its $2.98 annual dividend with an expected future payout ratio of 118.7%.

Global Partners Price Performance

Shares of GLP opened at $52.19 on Friday. The firm has a market capitalization of $1.77 billion, a PE ratio of 16.57 and a beta of 1.03. The company's 50-day moving average is $52.49 and its 200-day moving average is $52.65. Global Partners has a fifty-two week low of $37.00 and a fifty-two week high of $60.00. The company has a debt-to-equity ratio of 2.69, a current ratio of 1.17 and a quick ratio of 0.68.

Global Partners (NYSE:GLP - Get Free Report) last issued its quarterly earnings data on Thursday, May 8th. The energy company reported $0.36 earnings per share for the quarter, beating the consensus estimate of ($0.03) by $0.39. The company had revenue of $4.59 billion for the quarter, compared to analyst estimates of $5.64 billion. Global Partners had a net margin of 0.76% and a return on equity of 21.10%. Equities analysts forecast that Global Partners will post 2.13 EPS for the current year.

Insider Buying and Selling at Global Partners

In other news, COO Mark Romaine sold 7,119 shares of the stock in a transaction dated Tuesday, July 15th. The shares were sold at an average price of $51.28, for a total value of $365,062.32. Following the transaction, the chief operating officer directly owned 150,412 shares of the company's stock, valued at $7,713,127.36. This represents a 4.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders have sold 18,000 shares of company stock valued at $944,221 over the last 90 days. 41.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Global Partners

A hedge fund recently bought a new stake in Global Partners stock. Jane Street Group LLC purchased a new position in shares of Global Partners LP (NYSE:GLP - Free Report) during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm purchased 16,155 shares of the energy company's stock, valued at approximately $862,000. Hedge funds and other institutional investors own 38.12% of the company's stock.

About Global Partners

Global Partners LP engages in the purchasing, selling, gathering, blending, storing, and logistics of transporting gasoline and gasoline blendstocks, distillates, residual oil, renewable fuels, crude oil, and propane to wholesalers, retailers, and commercial customers. The company operates through three segments: Wholesale, Gasoline Distribution and Station Operations, and Commercial.

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