Information Services Group, Inc. to Issue Quarterly Dividend of $0.04 (NASDAQ:III)

Key Points

• Information Services Group declared a quarterly dividend of $0.045 per share, payable September 25 to shareholders of record on September 4. The dividend implies an annualized payout of $0.18 per share and a yield of approximately 3.7%.
• The company’s current dividend payout ratio is 100%, meaning earnings do not fully cover the dividend; however, analysts expect next year’s earnings to reduce the projected payout ratio to 51.4%.
• ISG reported quarterly EPS of $0.10, beating estimates of $0.05, while revenue of $65.49 million also exceeded expectations. Shares rose 13.8% to $4.85, and institutional investors own 73.1% of the stock.

Information Services Group, Inc. (NASDAQ:III - Get Free Report) announced a quarterly dividend on Wednesday, August 5th. Investors of record on Friday, September 4th will be given a dividend of 0.045 per share by the business services provider on Friday, September 25th. This represents a c) annualized dividend and a dividend yield of 3.7%. The ex-dividend date is Friday, September 4th.

Information Services Group has a dividend payout ratio of 100.0% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect Information Services Group to earn $0.35 per share next year, which means the company should continue to be able to cover its $0.18 annual dividend with an expected future payout ratio of 51.4%.

Information Services Group Stock Up 13.8%

Shares of NASDAQ:III traded up $0.59 on Thursday, hitting $4.85. 424,707 shares of the company traded hands, compared to its average volume of 264,568. The stock has a 50 day simple moving average of $4.14 and a 200-day simple moving average of $4.37. The company has a quick ratio of 2.65, a current ratio of 2.65 and a debt-to-equity ratio of 0.63. The company has a market cap of $231.98 million, a PE ratio of 24.24, a PEG ratio of 0.95 and a beta of 1.10. Information Services Group has a 52 week low of $3.74 and a 52 week high of $6.45.

Information Services Group (NASDAQ:III - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The business services provider reported $0.10 EPS for the quarter, beating the consensus estimate of $0.05 by $0.05. The company had revenue of $65.49 million for the quarter, compared to the consensus estimate of $62.86 million. Information Services Group had a net margin of 4.29% and a return on equity of 12.92%. As a group, research analysts expect that Information Services Group will post 0.27 earnings per share for the current year.

Institutional Investors Weigh In On Information Services Group

Hedge funds have recently added to or reduced their stakes in the stock. BNP Paribas Financial Markets grew its holdings in shares of Information Services Group by 65.7% in the third quarter. BNP Paribas Financial Markets now owns 9,427 shares of the business services provider's stock worth $54,000 after acquiring an additional 3,739 shares during the period. Tower Research Capital LLC TRC increased its position in shares of Information Services Group by 250.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 10,047 shares of the business services provider's stock valued at $48,000 after purchasing an additional 7,177 shares during the last quarter. American Century Companies Inc. purchased a new position in shares of Information Services Group in the second quarter worth approximately $53,000. Verdad Advisers LP bought a new stake in Information Services Group during the fourth quarter valued at approximately $67,000. Finally, Centiva Capital LP purchased a new stake in Information Services Group during the third quarter valued at approximately $68,000. 73.10% of the stock is currently owned by hedge funds and other institutional investors.

Information Services Group Company Profile

Information Services Group, Inc (ISG) is a leading global technology research and advisory firm specializing in digital transformation, sourcing strategies and technology-driven business operations. Headquartered in Stamford, Connecticut, the company leverages deep market insights and data analytics to help clients optimize cost structures, accelerate growth and navigate complex technology landscapes. Since its founding in 2006, ISG has cultivated expertise across industries including financial services, healthcare, manufacturing and the public sector.

ISG's core offerings include sourcing advisory, managed governance, market intelligence and research services.

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