Winmark (NASDAQ:WINA) Stock Price Up 5.2% After Dividend Announcement

Key Points

• Winmark shares rose 5.2% after the company announced a new quarterly dividend, briefly trading as high as $394.33. The stock closed previously at $376.76 and saw lighter-than-normal volume.
• The dividend will pay $1.02 per share on September 1 to shareholders of record on August 12, equal to $4.08 annually and a 1.0% yield. Winmark’s payout ratio is currently 36.76%.
• Despite the stock pop, Winmark recently missed earnings expectations for the quarter, posting $2.81 EPS versus the $3.14 consensus. Analyst sentiment remains cautious, with a current consensus rating of Hold.

Winmark Corporation (NASDAQ:WINA - Get Free Report) shares were up 5.2% during trading on Thursday following a dividend announcement from the company. The company traded as high as $394.33 and last traded at $396.5020. Approximately 11,091 shares traded hands during trading, a decline of 84% from the average session volume of 70,544 shares. The stock had previously closed at $376.76.The newly announced dividend which will be paid on Tuesday, September 1st. Shareholders of record on Wednesday, August 12th will be given a $1.02 dividend. This represents a $4.08 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Wednesday, August 12th. Winmark's dividend payout ratio is presently 36.76%.

Wall Street Analyst Weigh In

Separately, Weiss Ratings reissued a "hold (c)" rating on shares of Winmark in a research note on Tuesday. One research analyst has rated the stock with a Hold rating, According to MarketBeat.com, the company presently has a consensus rating of "Hold".

Winmark Price Performance

The firm has a market capitalization of $1.41 billion, a PE ratio of 35.53 and a beta of 0.52. The company has a 50-day moving average price of $387.48 and a 200 day moving average price of $415.08.

Winmark (NASDAQ:WINA - Get Free Report) last released its earnings results on Wednesday, July 15th. The specialty retailer reported $2.81 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.14 by ($0.33). Winmark had a negative return on equity of 100.45% and a net margin of 48.19%.The business had revenue of $21.97 million for the quarter, compared to analysts' expectations of $21.67 million.

Institutional Trading of Winmark

Hedge funds have recently bought and sold shares of the stock. State of Wyoming grew its position in shares of Winmark by 144.8% during the first quarter. State of Wyoming now owns 71 shares of the specialty retailer's stock valued at $30,000 after purchasing an additional 42 shares in the last quarter. GAMMA Investing LLC grew its holdings in Winmark by 141.5% during the 2nd quarter. GAMMA Investing LLC now owns 99 shares of the specialty retailer's stock valued at $42,000 after buying an additional 58 shares in the last quarter. Caitong International Asset Management Co. Ltd bought a new stake in Winmark in the 4th quarter worth approximately $50,000. Global Retirement Partners LLC increased its stake in Winmark by 265.4% in the 4th quarter. Global Retirement Partners LLC now owns 190 shares of the specialty retailer's stock worth $77,000 after acquiring an additional 138 shares during the last quarter. Finally, Tower Research Capital LLC TRC raised its holdings in shares of Winmark by 19.0% during the 2nd quarter. Tower Research Capital LLC TRC now owns 213 shares of the specialty retailer's stock worth $80,000 after acquiring an additional 34 shares in the last quarter. Hedge funds and other institutional investors own 73.32% of the company's stock.

Winmark Company Profile

Winmark Corporation NASDAQ: WINA is a franchisor of retail resale stores, specializing in the resale of apparel, sporting goods, children's and maternity clothing, toys, and entertainment media. Through its portfolio of well-known brands—such as Plato's Closet, Once Upon a Child, Play It Again Sports, and Style Encore—Winmark provides aspiring entrepreneurs the opportunity to own and operate neighborhood resale businesses. The company supports its franchisees with site selection, store design, training programs, and ongoing marketing assistance, emphasizing a turnkey approach to retail entrepreneurship.

Each of Winmark's franchised brands targets a distinct consumer segment.

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