Weiss Ratings Maintains Buy Rating for Spok Amid Analysts’ Divergence

Weiss Ratings has reaffirmed its “Buy” rating for shares of Spok Holdings, Inc. (NASDAQ: SPOK), according to a research note released on Tuesday. This endorsement comes amid a contrasting evaluation from Wall Street Zen, which downgraded Spok from a “Strong Buy” to a “Buy” rating on October 11, 2023. Currently, one analyst rates the stock as a Strong Buy, while another classifies it as a Buy. As reported by MarketBeat, Spok enjoys a consensus rating of “Strong Buy” with an average price target of $20.00.

Spok released its latest earnings report on July 30, 2023. The wireless communications provider reported earnings per share of $0.22, surpassing analysts’ consensus estimate of $0.18 by $0.04. Revenue for the quarter reached $35.69 million, exceeding the expected $35.00 million. The company reported a return on equity of 11.11% and a net margin of 12.12%. Looking ahead, analysts predict that Spok will achieve earnings per share of $0.76 for the current fiscal year.

Dividend Announcement and Insider Activity

In addition to its earnings report, Spok recently announced a quarterly dividend. The dividend, amounting to $0.3125 per share, was paid on September 9, 2023, to investors on record as of August 19, 2023. This translates to an annualized dividend of $1.25 and an attractive yield of 8.0%. The company’s payout ratio currently stands at a substantial 150.60%.

Insider trading activity has also been noteworthy. CEO Vincent D. Kelly sold 25,000 shares of the company on August 21, 2023, at an average price of $17.69, totaling $442,250.00. Following this transaction, Kelly holds 102,817 shares valued at approximately $1,818,832.73, reflecting a 19.56% reduction in his holdings. Meanwhile, COO Michael W. Wallace sold 10,806 shares on August 25, 2023, at an average price of $17.87, amounting to $193,103.22. Wallace’s remaining stock is valued at around $721,394.03, representing a 21.12% decrease in his position.

Investor Interest and Holdings

Recent movements in institutional ownership indicate growing interest in Spok. Several large investors have increased their stakes in the company. For instance, Ameritas Investment Partners Inc. raised its holdings by 41.7% during the second quarter, now owning 2,080 shares valued at $37,000. Russell Investments Group Ltd. also increased its stake by 40.0%, acquiring an additional 747 shares for a total of 2,613 shares worth $46,000.

SBI Securities Co. Ltd. enhanced its holdings by 62.2% during the first quarter, culminating in ownership of 2,200 shares valued at $36,000. Virtus Investment Advisers LLC and Significant Wealth Partners LLC also expanded their holdings by 9.3% and 4.5%, respectively. As a result, institutional investors collectively own 50.81% of Spok’s stock.

Spok Holdings, Inc. provides healthcare communication solutions across the United States, Europe, Canada, Australia, Asia, and the Middle East. The company’s offerings aim to streamline workflows for healthcare professionals and support compliance in administrative processes. Among its products is the GenA Pager, which serves as a one-way alphanumeric pager designed to enhance communication within healthcare settings.

As the company continues to navigate market dynamics, its performance and strategic decisions will be closely monitored by analysts and investors alike.