Winmark (NASDAQ:WINA) Shares Gap Up - Here's Why

Key Points

• Winmark shares jumped: The stock opened at $313.31 versus a prior close of $297.97 and last traded near $315.73, though trading volume was low at 2,865 shares.
• Analyst sentiment remains cautious: Weiss Ratings downgraded Winmark from “hold (c)” to “hold (c-),” while the company maintains an average “Hold” rating from analysts.
• Financial highlights include a dividend and mixed earnings: Winmark reported quarterly EPS of $3.21, slightly below estimates, but revenue of $27.89 million exceeded expectations. The company declared a $1.02 quarterly dividend, equal to a 1.3% yield.

Winmark Corporation (NASDAQ:WINA - Get Free Report) shares gapped up prior to trading on Friday. The stock had previously closed at $297.97, but opened at $313.31. Winmark shares last traded at $315.7320, with a volume of 2,865 shares trading hands.

Analysts Set New Price Targets

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

Winmark Stock Performance

The company's fifty day moving average price is $317.71 and its 200 day moving average price is $362.56. The firm has a market capitalization of $1.13 billion, a price-to-earnings ratio of 27.98 and a beta of 0.57.

Winmark (NASDAQ:WINA - Get Free Report) last posted its quarterly earnings data 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 during the quarter, compared to the consensus estimate of $23.99 million. Winmark had a net margin of 45.13% and a negative return on equity of 90.38%.

Winmark Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Wednesday, November 11th will be issued a $1.02 dividend. This represents a $4.08 annualized dividend and a yield of 1.3%. The ex-dividend date is Tuesday, November 10th. Winmark's dividend payout ratio (DPR) is 36.40%.

Hedge Funds Weigh In On Winmark

Several hedge funds and other institutional investors have recently modified their holdings of the stock. BlackRock Inc. acquired a new position in Winmark during the 2nd quarter worth $207,212,000. Port Capital LLC acquired a new position in Winmark during the second quarter worth $36,709,000. Copeland Capital Management LLC raised its stake in shares of Winmark by 55.2% during the 3rd quarter. Copeland Capital Management LLC now owns 97,891 shares of the specialty retailer's stock worth $29,386,000 after purchasing an additional 34,832 shares in the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of Winmark in the second quarter valued at approximately $13,319,000. Finally, Bank of America Corp DE acquired a new position in Winmark in the 2nd quarter valued at about $6,524,000. Institutional investors own 73.32% of the company's stock.

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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