Gamma Communications (LON:GAMA) Trading 12.8% Higher Following Dividend Announcement

Gamma Communications plc (LON:GAMA) shares rose 12.8% during mid-day trading on Wednesday following a dividend announcement from the company. The stock traded as high as GBX 1,710 ($22.36) and last traded at GBX 1,694 ($22.15). Approximately 1,074,087 shares changed hands during trading, an increase of 342% from the average daily volume of 243,132 shares. The stock had previously closed at GBX 1,502 ($19.64).

The newly announced dividend which will be paid on Thursday, October 17th. Investors of record on Thursday, September 19th will be paid a GBX 6.50 ($0.09) dividend. The ex-dividend date is Thursday, September 19th. This represents a yield of 0.43%. Gamma Communications’s payout ratio is currently 3,090.91%.

Analysts Set New Price Targets

GAMA has been the topic of a number of analyst reports. Berenberg Bank assumed coverage on shares of Gamma Communications in a research note on Monday, June 3rd. They issued a “buy” rating and a GBX 1,980 ($25.89) target price on the stock. Shore Capital restated a “buy” rating on shares of Gamma Communications in a research report on Tuesday.

Gamma Communications Stock Performance

The stock has a market capitalization of £1.62 billion, a price-to-earnings ratio of 3,080.00, a price-to-earnings-growth ratio of 2.79 and a beta of 0.82. The company has a quick ratio of 2.45, a current ratio of 2.92 and a debt-to-equity ratio of 3.40. The stock’s 50-day simple moving average is GBX 1,479.85 and its 200 day simple moving average is GBX 1,402.07.

Gamma Communications Company Profile

Gamma Communications plc, together with its subsidiaries, engages in the provision of technology-based communications and software services for small, medium, and large sized to businesses in Western Europe. The company offers Unified Communications as a Service products for enabling businesses to raise productivity, boost agility, and increase collaboration; Contact Centre as a Service, through a software platform that allows contact centres to operate over the internet for SMEs and Enterprise; and Direct Routing and Operator Connect services, designed to enable seamless and integrated calling between Teams and the local telephony infrastructure.