Winmark (NASDAQ:WINA) Sees Unusually-High Trading Volume - Time to Buy?

Key Points

• Winmark shares traded at unusually high volume, with 52,649 shares changing hands, though that was 25% below the prior session. The stock fell to about $299.84 from a $305.10 close and remains below its 50- and 200-day moving averages.
• Analyst sentiment remains cautious: Weiss Ratings downgraded Winmark from “hold (c)” to “hold (c-),” while the broader analyst consensus is “Hold.” The company also narrowly missed quarterly EPS expectations despite reporting revenue above estimates.
• Winmark declared a quarterly dividend of $1.02, implying a $4.08 annualized payout and a 1.4% yield. Institutional investors own 73.32% of the stock, with several hedge funds increasing their positions.

Shares of Winmark Corporation (NASDAQ:WINA - Get Free Report) saw unusually-high trading volume on Wednesday. 52,649 shares traded hands during mid-day trading, a decline of 25% from the previous session's volume of 70,264 shares. The stock last traded at $299.8370 and had previously closed at $305.10.

Wall Street Analyst Weigh In

Separately, Weiss Ratings cut shares of Winmark from a "hold (c)" rating to a "hold (c-)" rating in a research report on Friday, September 18th. One research analyst has rated the stock with a Hold rating. According to data from MarketBeat, Winmark currently has an average rating of "Hold".

Winmark Stock Down 3.0%

The business's 50 day simple moving average is $313.83 and its two-hundred day simple moving average is $360.02. The stock has a market cap of $1.05 billion, a P/E ratio of 26.41 and a beta of 0.57.

Winmark (NASDAQ:WINA - Get Free Report) last issued its earnings results on Wednesday, October 14th. The specialty retailer reported $3.21 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.23 by ($0.02). The company had revenue of $27.89 million for the quarter, compared to the consensus estimate of $23.99 million. Winmark had a negative return on equity of 94.74% and a net margin of 45.13%.

Winmark Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Wednesday, November 11th will be given a $1.02 dividend. The ex-dividend date of this dividend is Tuesday, November 10th. This represents a $4.08 annualized dividend and a dividend yield of 1.4%. Winmark's payout ratio is 36.40%.

Hedge Funds Weigh In On Winmark

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Copeland Capital Management LLC raised its position in shares of Winmark by 55.2% during the third quarter. Copeland Capital Management LLC now owns 97,891 shares of the specialty retailer's stock valued at $29,386,000 after buying an additional 34,832 shares during the last quarter. Legacy Wealth Asset Management LLC lifted its stake in shares of Winmark by 7.7% during the 3rd quarter. Legacy Wealth Asset Management LLC now owns 751 shares of the specialty retailer's stock worth $225,000 after purchasing an additional 54 shares during the last quarter. GAMMA Investing LLC increased its position in Winmark by 360.6% during the 3rd quarter. GAMMA Investing LLC now owns 456 shares of the specialty retailer's stock valued at $137,000 after buying an additional 357 shares in the last quarter. Congress Asset Management Co. boosted its stake in Winmark by 21.3% in the 3rd quarter. Congress Asset Management Co. now owns 41,942 shares of the specialty retailer's stock worth $12,591,000 after purchasing an additional 7,361 shares in the last quarter. Finally, Envestnet Portfolio Solutions Inc. purchased a new stake in shares of Winmark during the second quarter valued at $696,000. 73.32% of the stock is currently owned by hedge funds and other institutional investors.

Winmark Company Profile

Winmark Corporation is a franchising and equipment-leasing company headquartered in Minneapolis, Minnesota. Through its franchise business, the company supports a portfolio of retail brands focused primarily on the resale of apparel, children's products, sporting goods and musical instruments.

Winmark's principal franchise concepts include Plato's Closet, Once Upon a Child, Play It Again Sports, Style Encore and Music Go Round. These stores acquire and resell gently used merchandise, offering consumers lower-cost alternatives while providing opportunities for individuals to operate locally owned businesses.

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