Gamma Communications (LON:GAMA) Trading Up 12.8% After Dividend Announcement

Shares of Gamma Communications plc (LON:GAMA) shot up 12.8% during mid-day trading on Wednesday following a dividend announcement from the company. The company traded as high as GBX 1,710 ($22.36) and last traded at GBX 1,694 ($22.15). 1,074,087 shares traded hands during trading, an increase of 342% from the average session 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. Stockholders of record on Thursday, September 19th will be given a dividend of GBX 6.50 ($0.09) per share. This represents a dividend yield of 0.43%. The ex-dividend date is Thursday, September 19th. Gamma Communications’s dividend payout ratio is currently 3,090.91%.

Wall Street Analyst Weigh In

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

Gamma Communications Stock Performance

The company has a debt-to-equity ratio of 3.40, a current ratio of 2.92 and a quick ratio of 2.45. The firm has a market capitalization of £1.63 billion, a PE ratio of 3,098.18, a P/E/G ratio of 2.79 and a beta of 0.82. The company’s fifty day simple moving average is GBX 1,485.45 and its 200 day simple moving average is GBX 1,405.23.

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.