Weiss Ratings Maintains Buy Rating for Spok as Analysts React

Weiss Ratings has reaffirmed its “Buy” rating for shares of Spok Holdings, Inc. (NASDAQ: SPOK) in a report released on Tuesday. This decision comes amid a mixed response from analysts, as Wall Street Zen recently downgraded the stock from a “Strong Buy” to a “Buy” rating on October 11, 2023. Currently, one analyst rates the stock as a Strong Buy while another has issued a Buy rating. According to MarketBeat, the consensus rating for Spok remains at “Strong Buy,” with an average price target set at $20.00.

Recent Performance and Earnings Report

Spok, a provider of wireless communication solutions, reported its latest earnings on July 30, 2023. The company achieved an earnings per share (EPS) of $0.22 for the quarter, surpassing the consensus estimate of $0.18 by $0.04. In terms of revenue, Spok generated $35.69 million, exceeding expectations of $35.00 million. The firm also recorded a return on equity of 11.11% and a net margin of 12.12%. Analysts forecast that Spok will report an EPS of $0.76 for the current fiscal year.

In addition to its financial performance, Spok recently announced a quarterly dividend, which was paid on September 9, 2023. Shareholders on record as of August 19 received a dividend of $0.3125 per share. This translates to an annualized dividend of $1.25 and an impressive yield of 8.0%. Notably, Spok’s payout ratio currently stands at 150.60%.

Insider Trading Activity

Recent insider transactions have also attracted attention. CEO Vincent D. Kelly sold 25,000 shares of Spok on August 21, 2023, at an average price of $17.69, amounting to a total of $442,250. Following this transaction, Kelly retains 102,817 shares valued at approximately $1,818,832.73, reflecting a 19.56% decrease in his holdings. The transaction was documented in a filing with the Securities and Exchange Commission.

Similarly, COO Michael W. Wallace sold 10,806 shares on August 25, 2023, at an average price of $17.87, totaling around $193,103.22. This sale reduced his ownership to 40,369 shares, valued at approximately $721,394.03, a decline of 21.12% in his stake. Currently, insiders hold 7.37% of Spok’s stock.

Institutional Investor Activity

The involvement of institutional investors is noteworthy, as several large firms have recently adjusted their holdings in Spok. For instance, Ameritas Investment Partners Inc. increased its stake by 41.7% during the second quarter, now owning 2,080 shares valued at $37,000. Russell Investments Group Ltd. raised its holdings by 40.0%, bringing its total to 2,613 shares worth $46,000.

Other significant adjustments include SBI Securities Co. Ltd., which boosted its stake by 62.2%, now holding 2,200 shares valued at $36,000. Virtus Investment Advisers LLC and Significant Wealth Partners LLC also increased their stakes by 9.3% and 4.5%, respectively. Overall, institutional investors collectively own 50.81% of the company’s stock.

Spok Holdings, through its subsidiary Spok, Inc., specializes in healthcare communication solutions across the United States, Europe, Canada, Australia, Asia, and the Middle East. Its services aim to improve workflows for healthcare professionals and support compliance in administrative processes, ultimately enhancing patient outcomes.