WPP (NYSE:WPP) Shares Gap Up After Dividend Announcement

Wpp Plc (NYSE:WPP) gapped up before the market opened on Thursday following a dividend announcement from the company. The stock had previously closed at $20.61, but opened at $25.94. WPP shares last traded at $25.5150, with a volume of 515,975 shares trading hands.

The newly announced dividend which will be paid on Monday, November 2nd. Shareholders of record on Friday, October 9th will be issued a dividend of $0.5052 per share. This represents a yield of 390.0%. The ex-dividend date is Friday, October 9th.

Wall Street Analyst Weigh In

WPP has been the topic of several recent research reports. Berenberg Bank began coverage on WPP in a research note on Tuesday, June 9th. They issued a “buy” rating on the stock. Citigroup reaffirmed a “neutral” rating on shares of WPP in a research report on Thursday, April 30th. The Goldman Sachs Group assumed coverage on WPP in a report on Wednesday, June 3rd. They set a “sell” rating for the company. Weiss Ratings reissued a “sell (d)” rating on shares of WPP in a research report on Tuesday, June 16th. Finally, Rothschild & Co Redburn started coverage on shares of WPP in a research report on Thursday, May 28th. They set a “buy” rating on the stock. Two analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold”.

WPP Trading Up 6.3%

The stock’s fifty day moving average price is $18.70 and its 200-day moving average price is $18.19. The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 1.48.

Key WPP News

Here are the key news stories impacting WPP this week:

• Positive Sentiment: WPP said its revenue decline eased, with first-half revenue less pass-through costs down 4.7% on a like-for-like basis—better than the previously expected mid-to-high single-digit decline. Improving media-buying performance provided early evidence that the turnaround plan is working. WPP revenue decline eases as turnaround gains traction
• Positive Sentiment: Second-quarter results beat revenue expectations, reporting $4.22 billion versus a $3.23 billion consensus estimate. The better-than-expected top-line performance appears to have driven the strong investor reaction and lifted the stock toward its 52-week high. WPP quarterly earnings results
• Positive Sentiment: WPP announced a dividend of $0.5052 per share, payable November 2 to shareholders of record October 9. The reported 390% yield appears inconsistent with the quoted payment and should be independently verified before being used in valuation.
• Neutral Sentiment: WPP Media appointed Bhushan Bagkar as vice president of strategy, a personnel change that may support execution but is unlikely to materially affect near-term earnings. Bhushan Bagkar appointed vice president of strategy
• Negative Sentiment: Adjusted earnings of $0.50 per share missed the $0.81 consensus estimate by $0.31, indicating that profitability and margins remain under pressure despite the revenue improvement.
• Negative Sentiment: UBS maintained its “sell” rating, saying it is too early to call the turnaround successful. Although it raised its price target to 250 pence from 210 pence, the target remains well below the current London-listed share price, creating a significant valuation warning after the rally. UBS keeps sell rating on WPP

Institutional Trading of WPP

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Bank of Montreal Can lifted its holdings in WPP by 385.3% during the 4th quarter. Bank of Montreal Can now owns 451,182 shares of the business services provider’s stock worth $10,134,000 after purchasing an additional 358,218 shares during the last quarter. Balyasny Asset Management L.P. grew its holdings in WPP by 1,082.6% in the 4th quarter. Balyasny Asset Management L.P. now owns 254,389 shares of the business services provider’s stock valued at $5,714,000 after buying an additional 232,878 shares in the last quarter. ABC Arbitrage SA bought a new position in WPP during the 4th quarter worth $5,199,000. Tower Research Capital LLC TRC lifted its holdings in shares of WPP by 3,840.2% during the fourth quarter. Tower Research Capital LLC TRC now owns 136,135 shares of the business services provider’s stock worth $3,058,000 after buying an additional 132,680 shares in the last quarter. Finally, Renaissance Technologies LLC acquired a new stake in shares of WPP during the first quarter worth $1,619,000. Institutional investors own 4.34% of the company’s stock.

WPP Company Profile

WPP plc (NYSE: WPP) is a British multinational advertising and public relations company headquartered in London, England. Recognized as one of the world’s largest communications services groups, WPP provides a wide array of marketing, advertising, media investment management and data consultancy services. Through its integrated network of agencies—among them Ogilvy, Grey, GroupM and Wavemaker—the company delivers creative content, brand strategy, digital transformation and media planning solutions to clients across virtually every industry.

Established in 1971 by Martin Sorrell as Wire and Plastic Products, the firm underwent a strategic transformation in the 1980s, focusing on acquisitions that expanded its capabilities into advertising and communications.