On April 19th, Absolute Software Co. (NASDAQ:ABST) declared a quarterly dividend, sending ripples across the market. Shareholders of record on May 11th will receive a dividend worth $0.059 per share on May 24th, resulting in an annualized payout of $0.24 per share and a yield of 2.97%. However, with the ex-dividend date being May 10th, investors who purchase the stock after this date will not be entitled to receive the dividend.
As of opening on April 22nd, NASDAQ:ABST was trading at $7.94 per share. Absolute Software’s shares have had fluctuating performance over the last year, with its fifty-two week low at $6.79 and high at $12.59. As of its most recent filing, the company’s fifty-day moving average is $8.43 while its two-hundred day moving average stands at $9.94.
Despite this lukewarm price action, some large investors continue to hold stakes in Absolute Software and are even increasing their participation in the company’s financials. For example, Baird Financial Group Inc., Royal Bank of Canada, and Credit Suisse AG have all recently raised their stakeholdings by between 15-17% each over differing quarters.
As far as analysts are concerned, Needham & Company LLC maintains a “buy” rating on ABST shares and has set a target price of $14 for them in light of these developments.
While dividend payouts can often result in market optimism leading up to payment dates amongst current shareholders, ABST’s current price actions may suggest otherwise from others who are currently holding off buying or investing further into ownership.
All market trends aside though – seasoned investors are well aware no news or reports affecting stocks can provide guarantees; indications and predilections however are something we’re privy too and one to pay close mind to in 2023’s investment portfolio strategy.
Absolute Software Misses EPS Expectations, but Revenue Targets Met; Edenbrook Capital Acquires Stock
On February 14th of this year, Absolute Software announced its earnings results for the quarter ending on that same day. The company had been heavily anticipated to exceed consensus estimates for their earnings per share (EPS) of $0.09, but instead posted a disappointing ($0.13). This figure missed analysts’ consensus by a margin of ($0.22), which resulted in the disappointment of shareholders and lowered much curiosity around company investments.
Despite posting a lower EPS than expected, the firm did manage to hit revenue targets with $57.19 million in revenue for the quarter – almost identical to analyst expectations at $59.90 million. Following these announcements and revelations, research analysts have adjusted their projections and now expect an EPS of 0.15 for Absolute Software’s current year.
Edenbrook Capital acquired a substantial chunk of the company’s stock on Tuesday, March 28th with a transaction amounting to 25,000 shares – at an average cost of $7.48 each one-with a resulting value of $187,000.00 USD; it is reported that the acquisition was disclosed in accordance with relevant regulations to maintain transparency while preventing insider trading conflicts-of-interest within companies.
To date April 22nd showing that insiders bought another sum equal to 37,562 qualifying shares valued at $281,541 over the past three months since March-end transactions were completed under orchestrated timeframes approvals avoiding scrutiny limitations imposed by regulatory restrictions or shareholder concerns related issues relative to governance structures implementations and perceived lackthereof in corporate policymaking processes that may detriment company financials if left unchecked by investors within markets hungry for more assets gains wherever they can be found nowadays.
Will Absolute Software meet revised expectations for its current fiscal year? Or will uncertainty remain until further changes? Only time will tell as analysts carefully monitor this business throughout its journey forward.
