Global Water Resources, Inc. (NASDAQ:GWRS) to Issue $0.03 Monthly Dividend

Key Points

• Monthly dividend declared: Global Water Resources announced a $0.0253 per-share monthly payout payable May 29 to holders of record May 15 (ex-dividend May 15), implying roughly a $0.30 annualized payout and a 4.3% yield.
• Dividend coverage is weak: the company’s payout ratio is 107.1%, and analysts forecast $0.12 EPS next year (implying a ~250% payout ratio on the $0.30 annual dividend), meaning earnings do not cover the dividend and the company is relying on its balance sheet.
• Insider buying amid concerns: Director Andrew M. Cohn bought 18,305 shares in March and insiders now own 53.7% of the stock, indicating insider conviction despite the dividend sustainability issues and mixed operating metrics.

Global Water Resources, Inc. (NASDAQ:GWRS - Get Free Report) announced a monthly dividend on Thursday, April 30th. Stockholders of record on Friday, May 15th will be given a dividend of 0.0253 per share by the utilities provider on Friday, May 29th. This represents a c) annualized dividend and a dividend yield of 4.3%. The ex-dividend date of this dividend is Friday, May 15th.

Global Water Resources has decreased its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 8 consecutive years. Global Water Resources has a payout ratio of 107.1% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Global Water Resources to earn $0.12 per share next year, which means the company may not be able to cover its $0.30 annual dividend with an expected future payout ratio of 250.0%.

Global Water Resources Trading Down 1.3%

Shares of NASDAQ:GWRS traded down $0.09 during mid-day trading on Thursday, hitting $7.11. The company had a trading volume of 83,677 shares, compared to its average volume of 73,457. The firm has a fifty day moving average price of $7.86 and a 200 day moving average price of $8.64. The company has a market capitalization of $204.51 million, a PE ratio of 71.11 and a beta of 1.04. The company has a debt-to-equity ratio of 1.54, a current ratio of 0.76 and a quick ratio of 0.76. Global Water Resources has a one year low of $7.07 and a one year high of $11.17.

Global Water Resources (NASDAQ:GWRS - Get Free Report) last released its quarterly earnings data on Wednesday, March 4th. The utilities provider reported ($0.01) earnings per share for the quarter, missing the consensus estimate of $0.04 by ($0.05). The company had revenue of $13.54 million during the quarter, compared to the consensus estimate of $13.73 million. Global Water Resources had a net margin of 5.30% and a return on equity of 4.73%. As a group, research analysts forecast that Global Water Resources will post 0.06 EPS for the current year.

Insider Buying and Selling

In other Global Water Resources news, Director Andrew M. Cohn purchased 18,305 shares of the firm's stock in a transaction on Friday, March 13th. The stock was acquired at an average price of $7.20 per share, for a total transaction of $131,796.00. Following the purchase, the director owned 2,560,984 shares of the company's stock, valued at $18,439,084.80. This trade represents a 0.72% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Company insiders own 53.70% of the company's stock.

Institutional Trading of Global Water Resources

Hedge funds and other institutional investors have recently bought and sold shares of the business. Allworth Financial LP increased its stake in Global Water Resources by 75,025.0% during the 3rd quarter. Allworth Financial LP now owns 3,005 shares of the utilities provider's stock valued at $31,000 after purchasing an additional 3,001 shares in the last quarter. Russell Investments Group Ltd. increased its stake in Global Water Resources by 152.6% during the 3rd quarter. Russell Investments Group Ltd. now owns 3,461 shares of the utilities provider's stock valued at $36,000 after purchasing an additional 2,091 shares in the last quarter. Tower Research Capital LLC TRC increased its stake in Global Water Resources by 258.9% during the 2nd quarter. Tower Research Capital LLC TRC now owns 3,898 shares of the utilities provider's stock valued at $40,000 after purchasing an additional 2,812 shares in the last quarter. BNP Paribas Financial Markets increased its stake in Global Water Resources by 120.9% during the 3rd quarter. BNP Paribas Financial Markets now owns 4,753 shares of the utilities provider's stock valued at $49,000 after purchasing an additional 2,601 shares in the last quarter. Finally, Bridgeway Capital Management LLC bought a new stake in Global Water Resources during the 4th quarter valued at $84,000. Institutional investors own 27.91% of the company's stock.

About Global Water Resources

Global Water Resources, Inc NASDAQ: GWRS is a publicly traded holding company based in Scottsdale, Arizona, specializing in the ownership and management of water and wastewater utilities. The company provides critical potable water delivery, wastewater collection and treatment, and reclaimed water services to residential, commercial and industrial customers across select communities in Central and Southern Arizona.

The company operates multiple regulated utility systems, serving communities such as Anthem, Biltmore, Florence and San Tan Valley.

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