Ituran Location and Control Ltd. (NASDAQ:ITRN) Sees Significant Growth in Short Interest

Key Points

• Short interest in Ituran (NASDAQ:ITRN) surged 43.8% in April to 207,816 shares (about 1.0% of shares), with a short-interest ratio of 1.4 days based on average daily volume.
• Ituran raised its quarterly dividend to $1.50 (from $0.50), implying a $6.00 annualized payout and a 10.7% yield, but with a very high payout ratio of 206.19%.
• Institutional investors own 94.8% of the stock with several funds adding to positions, and Wall Street consensus is positive (average “Buy” rating and a $60.67 average price target) for the company (market cap ~$1.11B).

Ituran Location and Control Ltd. (NASDAQ:ITRN - Get Free Report) was the target of a significant increase in short interest in the month of April. As of April 15th, there was short interest totaling 207,816 shares, an increase of 43.8% from the March 31st total of 144,480 shares. Approximately 1.0% of the company's shares are sold short. Based on an average daily volume of 144,574 shares, the short-interest ratio is currently 1.4 days.

Institutional Investors Weigh In On Ituran Location and Control

A number of large investors have recently added to or reduced their stakes in the company. Y.D. More Investments Ltd lifted its holdings in Ituran Location and Control by 4.9% in the 4th quarter. Y.D. More Investments Ltd now owns 858,274 shares of the industrial products company's stock worth $37,236,000 after buying an additional 39,718 shares in the last quarter. CWA Asset Management Group LLC lifted its stake in shares of Ituran Location and Control by 212.5% in the third quarter. CWA Asset Management Group LLC now owns 58,864 shares of the industrial products company's stock worth $2,103,000 after acquiring an additional 40,027 shares in the last quarter. CSM Advisors LLC boosted its holdings in Ituran Location and Control by 30.2% in the third quarter. CSM Advisors LLC now owns 125,435 shares of the industrial products company's stock valued at $4,480,000 after purchasing an additional 29,090 shares during the last quarter. J.M. Arbour LLC acquired a new stake in Ituran Location and Control during the 4th quarter valued at approximately $881,000. Finally, State of Wyoming purchased a new stake in Ituran Location and Control during the 3rd quarter worth approximately $404,000. 94.80% of the stock is owned by institutional investors and hedge funds.

Ituran Location and Control Price Performance

NASDAQ:ITRN opened at $55.83 on Tuesday. The business's 50-day moving average is $51.05 and its two-hundred day moving average is $44.92. The firm has a market capitalization of $1.11 billion, a PE ratio of 19.27 and a beta of 0.66. Ituran Location and Control has a 12 month low of $32.71 and a 12 month high of $58.40.

Ituran Location and Control (NASDAQ:ITRN - Get Free Report) last posted its earnings results on Saturday, February 14th. The industrial products company reported $0.77 earnings per share (EPS) for the quarter. The business had revenue of $93.50 million during the quarter. Ituran Location and Control had a return on equity of 27.27% and a net margin of 16.15%.

Ituran Location and Control Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, April 16th. Stockholders of record on Monday, March 30th were paid a dividend of $1.50 per share. This is an increase from Ituran Location and Control's previous quarterly dividend of $0.50. This represents a $6.00 dividend on an annualized basis and a dividend yield of 10.7%. The ex-dividend date was Monday, March 30th. Ituran Location and Control's payout ratio is 206.19%.

Wall Street Analysts Forecast Growth

Several research firms have commented on ITRN. Wall Street Zen upgraded Ituran Location and Control from a "buy" rating to a "strong-buy" rating in a report on Sunday, April 12th. Barclays lifted their price target on shares of Ituran Location and Control from $50.00 to $55.00 and gave the company an "overweight" rating in a report on Thursday, March 5th. Weiss Ratings reiterated a "buy (b)" rating on shares of Ituran Location and Control in a report on Friday, March 27th. Loop Capital set a $57.00 target price on Ituran Location and Control in a report on Monday, March 9th. Finally, Maxim Group assumed coverage on shares of Ituran Location and Control in a research report on Thursday, March 12th. They set a "buy" rating and a $70.00 price target on the stock. Three equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the stock currently has an average rating of "Buy" and an average price target of $60.67.

Ituran Location and Control Company Profile

Ituran Location and Control Ltd. is a provider of wireless vehicle tracking and stolen vehicle recovery services. The company leverages a combination of cellular and global positioning system (GPS) technologies to offer real-time monitoring and location-based solutions for private vehicle owners, fleet operators and insurance companies. Its core offerings include subscription-based tracking devices, centralized control centers and software platforms that enable clients to detect unauthorized vehicle use, dispatch recovery teams and manage fleet logistics.

Founded in 1994 in Israel, Ituran pioneered the use of wireless communications for security and telematics applications.

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