Quad Graphics (NYSE:QUAD) Stock Breaks Below 200-Day Moving Average on Disappointing Earnings

Key Points

• Quad Graphics shares fell below their 200-day moving average after the company reported quarterly EPS of $0.35, missing the $0.37 analyst consensus. The stock traded as low as $7.41, while quarterly revenue of $586.7 million slightly exceeded expectations.
• The company declared a quarterly dividend of $0.10 per share, or $0.40 annualized, representing a 5.1% yield and a 75.47% payout ratio.
• Analysts maintain a generally positive outlook, with three Buy ratings and two Holds producing a “Moderate Buy” consensus and a $12.00 average price target, despite recent downgrades and the earnings miss.

Quad Graphics, Inc (NYSE:QUAD - Get Free Report)'s share price passed below its 200-day moving average during trading on Thursday after the company announced weaker than expected quarterly earnings. The stock has a 200-day moving average of $8.05 and traded as low as $7.41. Quad Graphics shares last traded at $7.7890, with a volume of 1,257,425 shares changing hands.

The business services provider reported $0.35 EPS for the quarter, missing analysts' consensus estimates of $0.37 by ($0.02). Quad Graphics had a net margin of 1.12% and a return on equity of 47.06%. The company had revenue of $586.70 million for the quarter, compared to analysts' expectations of $583.27 million.

Quad Graphics Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 4th. Investors of record on Tuesday, November 17th will be issued a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a dividend yield of 5.1%. The ex-dividend date is Tuesday, November 17th. Quad Graphics's dividend payout ratio (DPR) is currently 75.47%.

Wall Street Analyst Weigh In

A number of research analysts have commented on QUAD shares. Weiss Ratings upgraded Quad Graphics from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, October 8th. Rosenblatt Securities raised their price target on Quad Graphics from $9.80 to $13.00 and gave the stock a "buy" rating in a research note on Thursday, July 30th. Benchmark lifted their price target on Quad Graphics from $10.00 to $13.00 and gave the company a "buy" rating in a report on Thursday, July 30th. Finally, Zacks Research cut Quad Graphics from a "strong-buy" rating to a "hold" rating in a research note on Friday, October 2nd. Three research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $12.00.

Institutional Investors Weigh In On Quad Graphics

Large investors have recently bought and sold shares of the business. Dimensional Fund Advisors LP raised its stake in shares of Quad Graphics by 1.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,135,439 shares of the business services provider's stock valued at $7,506,000 after acquiring an additional 16,815 shares in the last quarter. Bank of New York Mellon Corp bought a new stake in Quad Graphics during the second quarter worth approximately $3,506,000. Arrowstreet Capital Limited Partnership boosted its position in Quad Graphics by 2.0% during the first quarter. Arrowstreet Capital Limited Partnership now owns 460,452 shares of the business services provider's stock worth $3,044,000 after purchasing an additional 9,174 shares during the period. Inspire Investing LLC bought a new stake in Quad Graphics during the first quarter worth approximately $1,672,000. Finally, Allspring Global Investments Holdings LLC grew its holdings in Quad Graphics by 60.1% during the first quarter. Allspring Global Investments Holdings LLC now owns 103,621 shares of the business services provider's stock valued at $685,000 after purchasing an additional 38,917 shares during the last quarter. 39.52% of the stock is currently owned by institutional investors.

Quad Graphics Stock Performance

The company has a market cap of $400.83 million, a price-to-earnings ratio of 14.70 and a beta of 1.12. The company has a debt-to-equity ratio of 2.81, a current ratio of 0.87 and a quick ratio of 0.60. The firm has a fifty day simple moving average of $9.65 and a 200 day simple moving average of $8.05.

About Quad Graphics

Quad NYSE: QUAD, formerly Quad/Graphics, is a marketing experience company that helps organizations plan, create, produce and distribute marketing communications. Its services span creative and content development, data and analytics, media planning and buying, marketing management, and production.

The company also provides commercial printing, packaging, direct mail, in-store marketing materials and other physical communications. By combining these capabilities with digital and technology services, Quad supports integrated marketing programs designed to connect brands with consumers across print, digital and other channels.

Quad was founded in 1971 by Harry V.

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