Winmark (NASDAQ:WINA) Stock Jumps 3.2% After Dividend Announcement

Winmark Corporation (NASDAQ:WINA)’s stock price traded up 3.2% during trading on Wednesday following a dividend announcement from the company. The company traded as high as $291.49 and last traded at $291.5450. 25,867 shares changed hands during trading, a decline of 63% from the average session volume of 69,673 shares. The stock had previously closed at $282.38.

The newly announced dividend which will be paid on Tuesday, December 1st. Investors of record on Wednesday, November 11th will be issued a dividend of $1.02 per share. This represents a $4.08 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date is Tuesday, November 10th. Winmark’s dividend payout ratio is currently 36.40%.

Analysts Set New Price Targets

Separately, Weiss Ratings downgraded Winmark from a “hold (c)” rating to a “hold (c-)” rating in a report on Friday, September 18th. One analyst has rated the stock with a Hold rating. Based on data from MarketBeat, the stock has a consensus rating of “Hold”.

Winmark Trading Up 5.5%

The business’s 50 day moving average price is $317.71 and its two-hundred day moving average price is $362.56. The stock has a market cap of $1.13 billion, a P/E ratio of 28.03 and a beta of 0.57.

Winmark (NASDAQ:WINA) last released its quarterly earnings results on Wednesday, October 14th. The specialty retailer reported $3.21 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $3.23 by ($0.02). Winmark had a negative return on equity of 90.38% and a net margin of 45.13%. The company had revenue of $27.89 million during the quarter, compared to the consensus estimate of $23.99 million.

Key Stories Impacting Winmark

Here are the key news stories impacting Winmark this week:

• Positive Sentiment: Revenue and earnings increased: Third-quarter revenue rose 23% year over year to $27.9 million, while net income increased to $11.8 million, or $3.21 per diluted share, from $11.1 million, or $3.02 per share, a year earlier. Operating income also improved to $15.8 million from $14.9 million. Winmark Q3 Revenue Rises to $27.9 Million as Net Income Reaches $11.8 Million
• Positive Sentiment: Dividend announcement supports shareholder returns: Winmark approved a quarterly cash dividend of $1.02 per share, payable December 1 to shareholders of record November 11. The company also approved a special dividend, providing an additional potential catalyst for income-focused investors. Winmark Corporation Announces Quarterly Cash Dividend and Special Dividend
• Positive Sentiment: Franchise network remains sizable: Winmark ended the quarter with 1,398 operating franchises and 79 additional awarded franchises that have not yet opened, indicating continued expansion potential.
• Neutral Sentiment: Revenue beat estimates, but EPS narrowly missed: Quarterly revenue exceeded the $23.99 million consensus estimate, but earnings per share of $3.21 came in slightly below the $3.23 analyst forecast. Winmark Fiscal Q3 Earnings, Revenue Rise
• Negative Sentiment: Valuation and ownership signals remain considerations: WINA trades at roughly 26.6 times earnings and remains below its 200-day moving average. Institutional positioning was mixed, with some large investors reducing or exiting holdings while others added shares.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the company. BlackRock Inc. bought a new stake in shares of Winmark during the second quarter valued at approximately $207,212,000. Port Capital LLC bought a new position in Winmark in the second quarter worth $36,709,000. Dimensional Fund Advisors LP raised its holdings in Winmark by 5.3% in the first quarter. Dimensional Fund Advisors LP now owns 74,379 shares of the specialty retailer’s stock worth $31,800,000 after purchasing an additional 3,771 shares in the last quarter. Copeland Capital Management LLC lifted its position in Winmark by 55.2% during the third quarter. Copeland Capital Management LLC now owns 97,891 shares of the specialty retailer’s stock valued at $29,386,000 after buying an additional 34,832 shares during the period. Finally, Bessemer Group Inc. lifted its position in Winmark by 3.5% during the first quarter. Bessemer Group Inc. now owns 42,738 shares of the specialty retailer’s stock valued at $18,273,000 after buying an additional 1,440 shares during the period. Hedge funds and other institutional investors own 73.32% of the company’s stock.

About Winmark

Winmark Corporation is a franchising and equipment-leasing company headquartered in Minneapolis, Minnesota. Through its franchise business, the company supports a portfolio of retail brands focused primarily on the resale of apparel, children’s products, sporting goods and musical instruments.

Winmark’s principal franchise concepts include Plato’s Closet, Once Upon a Child, Play It Again Sports, Style Encore and Music Go Round. These stores acquire and resell gently used merchandise, offering consumers lower-cost alternatives while providing opportunities for individuals to operate locally owned businesses.