LONDON, UK / ACCESSWIRE / March 23, 2018 / Active-Investors has a free review on Ituran Location and Control Ltd (NASDAQ: ITRN) ("Ituran") following the Company's announcement that it will begin trading ex-dividend on March 26, 2018. To capture the dividend payout, investors are required to purchase the stock a day prior (excluding weekend) to the ex-dividend date, that is by latest at the end of the trading session on March 23, 2018. Active-Investors has initiated due-diligence on this dividend stock. Register with us for more free research including the one on ITRN:
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Dividend Declared
On February 27, 2018, Ituran announced that its Board of Directors approved the distribution of a cash dividend in the amount of $0.24 per share. The dividend will be paid to shareholders of record as of March 27, 2018. The Company will pay the dividend out on April 11, 2018, net of taxes at the rate of 25%.
In its decision to approve the distribution of the cash dividend, Ituran's Board of Directors examined whether the Company meets the distribution criteria according to Israeli law. The Board of Directors concluded that the above-mentioned distribution will not undermine the Company's ability to keep performing in its current course of business or future plans and is able to meet its undertakings when due.
Ituran's indicated dividend represents a yield of 2.24%, which is substantially higher than the average dividend yield of 1.23% for the Technology sector.
Dividend Insight
Ituran has a dividend payout ratio of 38.9%, which means that the Company spends approximately $0.40 for dividend distribution out of every $1.00 earned. The dividend payout ratio reflects the amount a company is returning to shareholders versus how much money it is keeping on hand to reinvest in growth, to pay off debt, and/or to add to its cash reserves.
According to analysts' estimates, Ituran is forecasted to report earnings of $2.47 for the next year, which is more than double compared to the Company's annualized dividend of $0.96 per share.
Ituran's retained earnings as of December 31, 2017, prior to the distribution was US$92.1 million and retained earnings will reach US$87.1 million after the distribution. As of December 31, 2017, the Company had a cash balance in hand of US$36.9 million. As of December 31, 2017, Ituran's current assets (excluding cash, cash equivalents) were in the sum of US$106.7 million and current liabilities were in the sum of US$65.8 million. The Company's strong financial position indicates its ability to absorb any fluctuations in earnings and cash flow and to sustain its dividend distribution for a long period.
About Ituran Location and Control Ltd
Ituran is a leader in the emerging mobility technology field, providing value-added location-based services. The Company offers Stolen Vehicle Recovery, fleet management as well as mobile asset location, management & control services for vehicles, cargo and personal security. Its products and applications are used by customers in over 20 countries. Established in 1995, Ituran has over 1,700 employees worldwide, with offices in Israel, Brazil, Argentina, India, Canada, and the United States.
Stock Performance Snapshot
March 22, 2018 - At Thursday's closing bell, Ituran's stock dropped 7.28%, ending the trading session at $33.10.
Volume traded for the day: 72.02 thousand shares, which was above the 3-month average volume of 41.68 thousand shares.
Stock performance in the past twelve-month period – up 14.73%
After yesterday's close, Ituran's market cap was at $696.09 million.
Price to Earnings (P/E) ratio was at 15.84.
The stock has a dividend yield of 2.90%.
The stock is part of the Services sector, categorized under the Electronics Wholesale industry.
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