Spok Holdings, Inc. (NASDAQ:SPOK) Plans Quarterly Dividend of $0.31

Key Points

• Spok declared a quarterly dividend of $0.3125 per share, payable June 24 to shareholders of record on May 26 (ex-dividend date May 26), implying an annualized yield of 11.8%.
• The company's dividend sustainability is questionable: Spok's payout ratio is 158.2% and dividends have risen only ~0.2% per year over the past three years, meaning the dividend is being funded in part from the balance sheet rather than earnings.
• Spok missed April-quarter estimates, reporting $0.09 EPS vs. $0.18 expected and $33.23M revenue vs. $35M expected; the stock trades near $10.63 with a market cap of about $220M and a 12‑month range of $9.95–$19.31.

Spok Holdings, Inc. (NASDAQ:SPOK - Get Free Report) announced a quarterly dividend on Wednesday, April 29th. Stockholders of record on Tuesday, May 26th will be given a dividend of 0.3125 per share by the Wireless communications provider on Wednesday, June 24th. This represents a c) annualized dividend and a dividend yield of 11.8%. The ex-dividend date is Tuesday, May 26th.

Spok has raised its dividend by an average of 0.2%per year over the last three years. Spok has a payout ratio of 158.2% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments.

Spok Price Performance

SPOK stock opened at $10.63 on Thursday. The company has a market capitalization of $220.44 million, a P/E ratio of 14.01 and a beta of 0.49. Spok has a 12 month low of $9.95 and a 12 month high of $19.31. The firm's fifty day simple moving average is $11.70 and its 200-day simple moving average is $12.99.

Spok (NASDAQ:SPOK - Get Free Report) last issued its earnings results on Wednesday, April 29th. The Wireless communications provider reported $0.09 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.18 by ($0.09). The business had revenue of $33.23 million for the quarter, compared to analysts' expectations of $35.00 million. Spok had a return on equity of 10.63% and a net margin of 11.37%. As a group, sell-side analysts forecast that Spok will post 0.66 earnings per share for the current year.

Institutional Investors Weigh In On Spok

Hedge funds have recently modified their holdings of the company. Parallel Advisors LLC increased its stake in shares of Spok by 305.4% in the 3rd quarter. Parallel Advisors LLC now owns 1,796 shares of the Wireless communications provider's stock valued at $31,000 after purchasing an additional 1,353 shares in the last quarter. CANADA LIFE ASSURANCE Co grew its holdings in Spok by 69.8% in the fourth quarter. CANADA LIFE ASSURANCE Co now owns 2,465 shares of the Wireless communications provider's stock valued at $33,000 after purchasing an additional 1,013 shares during the period. McIlrath & Eck LLC grew its holdings in Spok by 49.3% in the third quarter. McIlrath & Eck LLC now owns 2,166 shares of the Wireless communications provider's stock valued at $37,000 after purchasing an additional 715 shares during the period. Royal Bank of Canada increased its position in shares of Spok by 182.8% in the fourth quarter. Royal Bank of Canada now owns 3,100 shares of the Wireless communications provider's stock valued at $40,000 after buying an additional 2,004 shares in the last quarter. Finally, Russell Investments Group Ltd. raised its stake in shares of Spok by 40.0% during the 2nd quarter. Russell Investments Group Ltd. now owns 2,613 shares of the Wireless communications provider's stock worth $46,000 after buying an additional 747 shares during the period. 50.81% of the stock is owned by hedge funds and other institutional investors.

About Spok

Spok, Inc is a publicly traded healthcare communications and collaboration company headquartered in Bellevue, Washington. The company specializes in providing secure, real-time clinical communication solutions designed to streamline workflows and enhance patient care. Serving hospitals, health systems, and other healthcare organizations across North America and selected international markets, Spok has positioned itself as a leading provider of secure messaging and nurse call integration.

Spok's flagship offering, the Spok Care Connect platform, delivers a suite of integrated products, including secure text and voice messaging, alarm and event management, call center solutions, and digital signage.

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