Park Aerospace (NYSE:PKE) Shares Gap Up on Strong Earnings

Key Points

• Park Aerospace shares gapped up after the company reported stronger-than-expected quarterly results, opening well above the prior close and trading higher in early session activity.
• The company posted earnings of $0.17 per share, beating analyst expectations of $0.14, while revenue came in at $18.31 million versus the $17.95 million estimate.
• Park Aerospace also announced a quarterly dividend of $0.125 per share, which implies an annualized dividend of $0.50 and a yield of about 1.3%.

Park Aerospace Corp. (NYSE:PKE - Get Free Report) shares gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $32.66, but opened at $36.66. Park Aerospace shares last traded at $38.6840, with a volume of 111,864 shares traded.

The semiconductor company reported $0.17 EPS for the quarter, topping analysts' consensus estimates of $0.14 by $0.03. Park Aerospace had a return on equity of 10.08% and a net margin of 15.38%.The business had revenue of $18.31 million for the quarter, compared to analysts' expectations of $17.95 million.

Park Aerospace Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, August 3rd. Stockholders of record on Wednesday, July 1st will be issued a $0.125 dividend. The ex-dividend date is Wednesday, July 1st. This represents a $0.50 annualized dividend and a dividend yield of 1.3%. Park Aerospace's dividend payout ratio (DPR) is currently 89.29%.

Analyst Upgrades and Downgrades

PKE has been the subject of several analyst reports. Needham & Company LLC reissued a "buy" rating and set a $43.00 price target on shares of Park Aerospace in a research report on Tuesday. Weiss Ratings upgraded shares of Park Aerospace from a "buy (b-)" rating to a "buy (b)" rating in a research report on Monday, June 1st. Citigroup reaffirmed a "market outperform" rating on shares of Park Aerospace in a research note on Tuesday. Wall Street Zen lowered shares of Park Aerospace from a "strong-buy" rating to a "buy" rating in a report on Sunday, June 14th. Finally, Citizens Jmp started coverage on shares of Park Aerospace in a report on Tuesday, June 9th. They set a "market outperform" rating and a $42.00 target price for the company. Four analysts have rated the stock with a Buy rating, According to MarketBeat.com, the company has a consensus rating of "Buy" and a consensus price target of $42.50.

Institutional Trading of Park Aerospace

A number of hedge funds and other institutional investors have recently modified their holdings of PKE. Parvin Asset Management LLC lifted its stake in Park Aerospace by 11.4% during the 1st quarter. Parvin Asset Management LLC now owns 4,875 shares of the semiconductor company's stock valued at $133,000 after acquiring an additional 500 shares during the period. Strs Ohio grew its stake in shares of Park Aerospace by 18.9% in the fourth quarter. Strs Ohio now owns 4,400 shares of the semiconductor company's stock worth $94,000 after acquiring an additional 700 shares during the period. BNP Paribas Financial Markets grew its stake in shares of Park Aerospace by 50.0% in the second quarter. BNP Paribas Financial Markets now owns 2,178 shares of the semiconductor company's stock worth $32,000 after acquiring an additional 726 shares during the period. ARS Investment Partners LLC raised its holdings in shares of Park Aerospace by 6.4% during the fourth quarter. ARS Investment Partners LLC now owns 13,085 shares of the semiconductor company's stock valued at $279,000 after purchasing an additional 782 shares during the last quarter. Finally, Kennedy Capital Management LLC raised its holdings in shares of Park Aerospace by 0.4% during the fourth quarter. Kennedy Capital Management LLC now owns 228,855 shares of the semiconductor company's stock valued at $4,884,000 after purchasing an additional 920 shares during the last quarter. 77.83% of the stock is owned by hedge funds and other institutional investors.

Park Aerospace Price Performance

The company has a market cap of $806.70 million, a P/E ratio of 69.30 and a beta of 0.39. The stock's 50-day moving average is $34.18 and its two-hundred day moving average is $29.84.

Park Aerospace Company Profile

Park Aerospace NYSE: PKE is a specialized materials and manufacturing company that designs, develops and produces high-performance composite structures, engineered laminates and specialty adhesives for aerospace, defense and industrial markets. Its product portfolio includes advanced honeycomb cores, composite assemblies, dielectric and high-reliability circuit materials, as well as structural and bonding solutions that meet demanding performance and weight requirements.

The company operates through two principal segments.

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