Grupo Financiero Galicia S.A. Plans Dividend of $0.62 (NASDAQ:GGAL)

Key Points

• Grupo Financiero Galicia declared a dividend of $0.6229 per share, with the ex-dividend date on May 11 and payment scheduled for May 8 for record holders.
• The bank has increased its dividend by an average of 1.0% annually over the past three years, but its 82.7% payout ratio suggests the dividend could become harder to sustain if earnings weaken.
• Analysts expect earnings of $6.43 per share next year, which would imply a 107.0% payout ratio against the company’s projected $6.88 annual dividend, raising coverage concerns.

Grupo Financiero Galicia S.A. (NASDAQ:GGAL - Get Free Report) declared a dividend on Thursday, April 30th, NASDAQ Dividends reports. Investors of record on Monday, May 11th will be paid a dividend of 0.6229 per share by the bank on Friday, May 8th. The ex-dividend date is Monday, May 11th.

Grupo Financiero Galicia has raised its dividend by an average of 1.0%annually over the last three years. Grupo Financiero Galicia has a dividend payout ratio of 82.7% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings decline. Analysts expect Grupo Financiero Galicia to earn $6.43 per share next year, which means the company may not be able to cover its $6.88 annual dividend with an expected future payout ratio of 107.0%.

Grupo Financiero Galicia Stock Performance

Shares of GGAL opened at $41.96 on Friday. The business's fifty day moving average price is $44.86 and its 200 day moving average price is $49.00. Grupo Financiero Galicia has a 12-month low of $25.89 and a 12-month high of $65.48. The stock has a market capitalization of $6.74 billion, a PE ratio of 21.19 and a beta of 1.27. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.16 and a quick ratio of 1.16.

Grupo Financiero Galicia (NASDAQ:GGAL - Get Free Report) last announced its quarterly earnings data on Saturday, February 14th. The bank reported ($0.36) earnings per share (EPS) for the quarter. Grupo Financiero Galicia had a return on equity of 18.96% and a net margin of 7.13%.The firm had revenue of $666.89 million for the quarter. Equities research analysts forecast that Grupo Financiero Galicia will post 3.66 EPS for the current year.

Institutional Investors Weigh In On Grupo Financiero Galicia

Hedge funds and other institutional investors have recently modified their holdings of the stock. Hantz Financial Services Inc. raised its stake in shares of Grupo Financiero Galicia by 131.6% during the third quarter. Hantz Financial Services Inc. now owns 938 shares of the bank's stock valued at $26,000 after purchasing an additional 533 shares in the last quarter. Rockefeller Capital Management L.P. bought a new stake in shares of Grupo Financiero Galicia during the fourth quarter valued at about $39,000. Caitong International Asset Management Co. Ltd raised its stake in shares of Grupo Financiero Galicia by 4,942.9% during the third quarter. Caitong International Asset Management Co. Ltd now owns 2,118 shares of the bank's stock valued at $58,000 after purchasing an additional 2,076 shares in the last quarter. State of Wyoming bought a new stake in Grupo Financiero Galicia in the fourth quarter worth about $74,000. Finally, Leonteq Securities AG raised its position in Grupo Financiero Galicia by 563.2% in the first quarter. Leonteq Securities AG now owns 2,036 shares of the bank's stock worth $95,000 after acquiring an additional 1,729 shares in the last quarter.

About Grupo Financiero Galicia

Grupo Financiero Galicia is a diversified financial services holding company headquartered in Buenos Aires, Argentina. As one of the country's largest private-sector financial institutions, the company provides a comprehensive suite of banking, insurance and investment products to individual, small-to-medium enterprise (SME) and corporate clients. Its operations span retail and commercial banking, asset management, leasing, factoring and pension fund administration.

The core banking segment offers deposit and lending services, credit and debit cards, payment solutions and digital banking platforms.

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