Arko (ARKO) Declares $0.03 Dividend
Arko said on February 27, 2023 that its board of directors declared a regular quarterly dividend of $0.03 per share ($0.12 annualized). Shareholders of record as of March 9, 2023 will receive the payment on March 21, 2023. Previously, the company paid $0.03 per share.
At the current share price of $8.02 / share, the stock's dividend yield is 1.50%. Looking back five years and taking a sample every week, the average dividend yield has been 1.18%, the lowest has been 0.73%, and the highest has been 1.58%. The standard deviation of yields is 0.16 (n=220).
The current dividend yield is 1.92 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.20. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company has not increased its dividend in the last three years.
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Analyst Price Forecast Suggests 52.19% Upside
As of March 1, 2023, the average one-year price target for Arko is $12.21. The forecasts range from a low of $9.34 to a high of $14.44. The average price target represents an increase of 52.19% from its latest reported closing price of $8.02.
The projected annual revenue for Arko is $9,384MM, an increase of 2.64%. The projected annual EPS is $0.56, an increase of 3.89%.
What is the Fund Sentiment?
There are 295 funds or institutions reporting positions in Arko. This is an increase of 10 owner(s) or 3.51% in the last quarter. Average portfolio weight of all funds dedicated to ARKO is 0.06%, a decrease of 40.60%. Total shares owned by institutions increased in the last three months by 22.82% to 58,888K shares. The put/call ratio of ARKO is 0.14, indicating a bullish outlook.
What are large shareholders doing?
HP Holding LLC f holds 10,242K shares representing 8.53% ownership of the company.
Invesco holds 3,873K shares representing 3.23% ownership of the company. In it's prior filing, the firm reported owning 4,139K shares, representing a decrease of 6.87%. The firm decreased its portfolio allocation in ARKO by 21.47% over the last quarter.
CDAM holds 3,872K shares representing 3.22% ownership of the company. In it's prior filing, the firm reported owning 5,892K shares, representing a decrease of 52.20%. The firm decreased its portfolio allocation in ARKO by 99.94% over the last quarter.
LMR Partners LLP holds 3,744K shares representing 3.12% ownership of the company. No change in the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 2,482K shares representing 2.07% ownership of the company. In it's prior filing, the firm reported owning 2,481K shares, representing an increase of 0.03%. The firm increased its portfolio allocation in ARKO by 19.99% over the last quarter.
ARKO Background Information
(This description is provided by the company.)
ARKO Corp. owns 100% of GPM Investments, LLC ("GPM"). Based in Richmond, VA, GPM was founded in 2003 with 169 stores and has grown through acquisitions to become the 7th largest convenience store chain in the United States, with approximately 2,950 locations comprised of approximately 1,350 company-operated stores and approximately 1,600 dealer sites to which it supplies fuel in 33 states and Washington D.C. GPM operates in three segments: retail, which consists of fuel and merchandise sales to retail consumers; wholesale, which supplies fuel to third-party dealers and consignment agents; and GPM Petroleum, which supplies fuel to GPM and its subsidiaries selling fuel (both in the retail and wholesale segments) as well as sub-wholesalers and bulk purchasers. Its stores offer its fasREWARDS® high value loyalty program, a large selection of beverages, coffee, fountain drinks, candy, salty snacks, and many other products to meet the needs of the everyday customer. One feature, setting many of its convenience stores apart is a wide array of proprietary food offerings ranging from fresh chicken, fresh-made salads, and sandwiches to healthy, grab-and-go meals.
This story originally appeared on Fintel.