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

Wpp Plc (NYSE:WPP) shares gapped up prior to trading 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 traded.

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

Analyst Ratings Changes

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

WPP Price Performance

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

More 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

Hedge Funds Weigh In On WPP

A number of large investors have recently bought and sold shares of the business. Cetera Investment Advisers boosted its holdings in shares of WPP by 9.2% in the second quarter. Cetera Investment Advisers now owns 7,766 shares of the business services provider’s stock valued at $272,000 after acquiring an additional 654 shares in the last quarter. Osaic Holdings Inc. raised its holdings in WPP by 105.8% during 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 in the last quarter. Ameriprise Financial Inc. raised its holdings in WPP by 6.0% during the third quarter. Ameriprise Financial Inc. now owns 13,704 shares of the business services provider’s stock worth $343,000 after purchasing an additional 776 shares in the last quarter. Caitong International Asset Management Co. Ltd acquired a new stake in WPP in the third quarter valued at about $28,000. Finally, Legacy Wealth Asset Management LLC lifted its position in WPP by 6.4% in the second quarter. Legacy Wealth Asset Management LLC now owns 18,988 shares of the business services provider’s stock valued at $294,000 after purchasing an additional 1,146 shares during the period. Institutional investors and hedge funds 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.