Medifast (MED) Declares $1.65 Dividend
Medifast said on March 16, 2023 that its board of directors declared a regular quarterly dividend of $1.65 per share ($6.60 annualized). Previously, the company paid $1.64 per share.
Shares must be purchased before the ex-div date of March 27, 2023 to qualify for the dividend. Shareholders of record as of March 28, 2023 will receive the payment on May 9, 2023.
At the current share price of $102.75 / share, the stock's dividend yield is 6.42%. Looking back five years and taking a sample every week, the average dividend yield has been 3.08%, the lowest has been 0.79%, and the highest has been 8.10%. The standard deviation of yields is 1.52 (n=236).
The current dividend yield is 2.21 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.49. 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's 3-Year dividend growth rate is 0.45%, demonstrating that it has increased its dividend over time.
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Analyst Price Forecast Suggests 6.69% Downside
As of March 18, 2023, the average one-year price target for Medifast is $95.88. The forecasts range from a low of $94.94 to a high of $98.70. The average price target represents a decrease of 6.69% from its latest reported closing price of $102.75.
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The projected annual revenue for Medifast is $1,617MM, an increase of 1.15%. The projected annual non-GAAP EPS is $13.39.
What is the Fund Sentiment?
There are 580 funds or institutions reporting positions in Medifast. This is unchanged over the last quarter. Average portfolio weight of all funds dedicated to MED is 0.13%, a decrease of 5.91%. Total shares owned by institutions decreased in the last three months by 0.84% to 10,421K shares. The put/call ratio of MED is 1.49, indicating a bearish outlook.
What are Large Shareholders Doing?
IJR - iShares Core S&P Small-Cap ETF holds 810K shares representing 7.51% ownership of the company. In it's prior filing, the firm reported owning 806K shares, representing an increase of 0.43%. The firm decreased its portfolio allocation in MED by 2.74% over the last quarter.
Renaissance Technologies holds 632K shares representing 5.86% ownership of the company. In it's prior filing, the firm reported owning 684K shares, representing a decrease of 8.18%. The firm decreased its portfolio allocation in MED by 4.83% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 331K shares representing 3.07% ownership of the company. In it's prior filing, the firm reported owning 321K shares, representing an increase of 2.97%. The firm increased its portfolio allocation in MED by 1.31% over the last quarter.
NAESX - Vanguard Small-Cap Index Fund Investor Shares holds 282K shares representing 2.61% ownership of the company. In it's prior filing, the firm reported owning 280K shares, representing an increase of 0.62%. The firm decreased its portfolio allocation in MED by 0.84% over the last quarter.
Rice Hall James & Associates holds 269K shares representing 2.50% ownership of the company. In it's prior filing, the firm reported owning 273K shares, representing a decrease of 1.40%. The firm increased its portfolio allocation in MED by 3.84% over the last quarter.
Medifast Background Information
(This description is provided by the company.)
Medifast is the global company behind one of the fastest-growing health and wellness communities, OPTAVIA®, which offers scientifically developed products, clinically proven plans and the support of Coaches and a Community to help Clients achieve Lifelong Transformation, One Healthy Habit at a Time®. Based on nearly 40 years of experience, Medifast has redefined direct selling by combining the best aspects of the model. Its community of thousands of independent OPTAVIA Coaches teach Clients how to develop holistic healthy habits through the proprietary Habits of Health® Transformational System. Medifast is ranked second on FORTUNE's 100 Fastest-Growing Companies list in 2020. The company was also named to Forbes' 100 Most Trustworthy Companies in America list in 2017.
This story originally appeared on Fintel.