WPP (NYSE:WPP) Reaches New 1-Year High Following Dividend Announcement

Shares of Wpp Plc (NYSE:WPP) reached a new 52-week high during mid-day trading on Friday after the company announced a dividend. The stock traded as high as $27.78 and last traded at $27.5950, with a volume of 761129 shares. The stock had previously closed at $25.95.

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

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the company. Citigroup reiterated a “neutral” rating on shares of WPP in a research note on Thursday, April 30th. Berenberg Bank assumed coverage on WPP in a report on Tuesday, June 9th. They issued a “buy” rating for the company. Rothschild & Co Redburn assumed coverage on shares of WPP in a research report on Thursday, May 28th. They issued a “buy” rating for the company. Weiss Ratings reiterated a “sell (d)” rating on shares of WPP in a research note on Tuesday, June 16th. Finally, The Goldman Sachs Group started coverage on shares of WPP in a research report on Wednesday, June 3rd. They set a “sell” rating on the stock. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold”.

WPP Price Performance

The company has a quick ratio of 0.89, a current ratio of 0.89 and a debt-to-equity ratio of 1.48. The business’s 50 day moving average is $18.52 and its 200-day moving average is $18.13.

WPP News Summary

Here are the key news stories impacting WPP this week:

• Positive Sentiment: WPP reported that revenue less pass-through costs declined 4.7% on a like-for-like basis in the first half, better than the “mid- to high-single-digit” decline previously expected. Improving media-buying performance provided evidence that the turnaround is starting to stabilize the business. WPP revenue decline eases as turnaround gains traction
• Positive Sentiment: Quarterly revenue of $4.22 billion exceeded the $3.23 billion consensus estimate, reinforcing the positive reaction to the results. However, earnings per share of $0.50 missed expectations of $0.81, limiting the strength of the fundamental improvement. WPP earnings results
• Positive Sentiment: The company announced a dividend of $0.5052 per share, payable November 2 to shareholders listed on October 9. The reported 390% yield appears inconsistent with a normal dividend calculation and may reflect a data error, so investors should verify the payout details.
• Neutral Sentiment: Bhushan Bagkar was appointed vice president of strategy at WPP Media. The leadership change may support the media business but is unlikely to be a major near-term stock catalyst. Bhushan Bagkar appointment
• Negative Sentiment: UBS maintained its “sell” rating, arguing that it is too early to declare the turnaround successful. Although UBS raised its price target to 250 pence from 210 pence, the new target remains well below the cited market price, highlighting valuation and execution risks after the rally. UBS keeps sell rating on WPP

Institutional Trading of WPP

Institutional investors and hedge funds have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd acquired a new position in shares of WPP in the 3rd quarter worth approximately $28,000. Global Retirement Partners LLC raised its position in shares of WPP by 1,279.5% during the 4th quarter. Global Retirement Partners LLC now owns 1,821 shares of the business services provider’s stock valued at $41,000 after acquiring an additional 1,689 shares in the last quarter. Farther Finance Advisors LLC lifted its stake in WPP by 184.5% during the fourth quarter. Farther Finance Advisors LLC now owns 1,889 shares of the business services provider’s stock worth $42,000 after purchasing an additional 1,225 shares during the last quarter. Osaic Holdings Inc. boosted its holdings in WPP by 105.8% in the second quarter. Osaic Holdings Inc. now owns 1,395 shares of the business services provider’s stock worth $49,000 after purchasing an additional 717 shares during the period. Finally, Rockefeller Capital Management L.P. increased its stake in WPP by 455.9% during the fourth quarter. Rockefeller Capital Management L.P. now owns 2,318 shares of the business services provider’s stock valued at $52,000 after purchasing an additional 1,901 shares during the last quarter. Institutional investors and hedge funds own 4.34% of the company’s stock.

About WPP

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.