Golden Entertainment, Inc. to Issue Quarterly Dividend of $0.25 (NASDAQ:GDEN)

Key Points

• Golden Entertainment, Inc. announced a quarterly dividend of $0.25 per share for stockholders of record on September 25th, which translates to an annualized yield of 4.0%.
• The company has a dividend payout ratio of 120.5%, indicating it's currently using its balance sheet to cover dividends, as projected earnings are insufficient to meet this payout.
• As of the latest trading session, Golden Entertainment's stock traded down by 5.8% to $25.22, with a 52-week range between $22.66 and $35.49.

Golden Entertainment, Inc. (NASDAQ:GDEN - Get Free Report) announced a quarterly dividend on Friday, August 8th, Wall Street Journal reports. Investors of record on Thursday, September 25th will be paid a dividend of 0.25 per share on Friday, October 3rd. This represents a c) annualized dividend and a yield of 4.0%. The ex-dividend date is Thursday, September 25th.

Golden Entertainment has a payout ratio of 120.5% 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 Golden Entertainment to earn $0.84 per share next year, which means the company may not be able to cover its $1.00 annual dividend with an expected future payout ratio of 119.0%.

Golden Entertainment Price Performance

Shares of GDEN traded up $0.72 during midday trading on Tuesday, hitting $25.26. 39,826 shares of the company traded hands, compared to its average volume of 209,460. The stock has a 50-day moving average of $28.84 and a 200-day moving average of $28.68. Golden Entertainment has a one year low of $22.66 and a one year high of $35.49. The firm has a market cap of $667.62 million, a P/E ratio of 46.82 and a beta of 1.83. The company has a debt-to-equity ratio of 0.86, a current ratio of 0.95 and a quick ratio of 0.87.

Golden Entertainment (NASDAQ:GDEN - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The company reported $0.17 EPS for the quarter, topping the consensus estimate of $0.14 by $0.03. Golden Entertainment had a return on equity of 3.16% and a net margin of 2.35%. The company had revenue of $163.62 million during the quarter, compared to analyst estimates of $169.70 million. As a group, sell-side analysts predict that Golden Entertainment will post 0.2 EPS for the current fiscal year.

Analyst Ratings Changes

GDEN has been the subject of several recent analyst reports. Macquarie cut their price objective on Golden Entertainment from $38.00 to $37.00 and set an "outperform" rating for the company in a report on Friday. Wells Fargo & Company dropped their target price on Golden Entertainment from $36.00 to $34.00 and set an "overweight" rating for the company in a research report on Tuesday. Truist Financial downgraded Golden Entertainment from a "buy" rating to a "hold" rating and dropped their target price for the stock from $36.00 to $34.00 in a research report on Wednesday, July 16th. Citigroup restated an "outperform" rating on shares of Golden Entertainment in a research report on Friday, July 18th. Finally, JMP Securities dropped their target price on Golden Entertainment from $36.00 to $35.00 and set a "market outperform" rating for the company in a research report on Friday, July 18th. Two investment analysts have rated the stock with a hold rating and six have assigned a buy rating to the company's stock. According to data from MarketBeat.com, Golden Entertainment presently has an average rating of "Moderate Buy" and an average target price of $35.33.

Golden Entertainment Company Profile

Golden Entertainment, Inc owns and operates a diversified entertainment platform in the United States. The company operates through four segments; Nevada Casino Resorts, Nevada Locals Casinos, Nevada Taverns, and Distributed Gaming. It also operates casino, casino resorts, and taverns; and slot machines in third party non-casino locations.