Emerald (NYSE:EEX) Downgraded by Rosenblatt Securities to Hold

Rosenblatt Securities downgraded shares of Emerald (NYSE:EEX) from a strong-buy rating to a hold rating in a research note published on Monday morning,Zacks.com reports.

Other research analysts have also issued research reports about the company. Weiss Ratings reiterated a “sell (d)” rating on shares of Emerald in a research report on Friday. Maxim Group reiterated a “hold” rating on shares of Emerald in a research report on Monday. Two analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Emerald has an average rating of “Reduce” and a consensus target price of $5.03.

Emerald Trading Up 0.1%

Shares of NYSE:EEX opened at $5.00 on Monday. Emerald has a 1 year low of $3.32 and a 1 year high of $5.45. The firm has a market capitalization of $988.56 million, a price-to-earnings ratio of -26.29 and a beta of 0.55. The company has a debt-to-equity ratio of 1.47, a current ratio of 0.82 and a quick ratio of 0.82. The business’s 50 day moving average price is $4.58 and its 200-day moving average price is $4.46.

Emerald (NYSE:EEX) last announced its earnings results on Monday, May 11th. The company reported $0.04 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.10 by ($0.06). Emerald had a negative net margin of 8.24% and a negative return on equity of 10.60%. The business had revenue of $155.40 million for the quarter, compared to analysts’ expectations of $155.40 million.

Emerald Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Thursday, May 21st will be issued a $0.015 dividend. The ex-dividend date is Thursday, May 21st. This represents a $0.06 dividend on an annualized basis and a yield of 1.2%. Emerald’s dividend payout ratio (DPR) is presently -40.00%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Abel Hall LLC purchased a new position in Emerald in the 1st quarter valued at $48,000. Inspire Investing LLC lifted its holdings in Emerald by 3.6% in the 1st quarter. Inspire Investing LLC now owns 110,725 shares of the company’s stock valued at $499,000 after purchasing an additional 3,857 shares in the last quarter. Ritholtz Wealth Management lifted its holdings in Emerald by 37.4% in the 1st quarter. Ritholtz Wealth Management now owns 20,595 shares of the company’s stock valued at $93,000 after purchasing an additional 5,603 shares in the last quarter. MSD Partners L.P. lifted its holdings in Emerald by 31.3% in the 4th quarter. MSD Partners L.P. now owns 1,400,339 shares of the company’s stock valued at $6,260,000 after purchasing an additional 333,701 shares in the last quarter. Finally, Russell Investments Group Ltd. lifted its holdings in Emerald by 127.0% in the 4th quarter. Russell Investments Group Ltd. now owns 6,957 shares of the company’s stock valued at $31,000 after purchasing an additional 3,892 shares in the last quarter. Hedge funds and other institutional investors own 14.90% of the company’s stock.

Key Stories Impacting Emerald

Here are the key news stories impacting Emerald this week:

• Positive Sentiment: Emerald agreed to be acquired by Apollo-managed funds in a cash deal valued at about $1.5 billion, with shareholders expected to receive $5.03 per share. That takeover premium has been the main catalyst supporting the stock. Emerald Expositions to Be Acquired by Apollo Funds
• Positive Sentiment: The company also declared a quarterly dividend of $0.015 per share, which may appeal to income-focused investors while the transaction is pending.
• Neutral Sentiment: Emerald reported quarterly revenue of $155.4 million, above expectations, but EPS of $0.04 missed the $0.11 consensus. The mixed results do not materially change the M&A-driven narrative. EEX earnings snapshot
• Negative Sentiment: Rosenblatt Securities reaffirmed a neutral rating but cut its price target to $5.03 from $7.70, implying only a small upside from the current trading level.
• Negative Sentiment: Maxim Group reiterated a hold rating and another report called the stock a downgrade, reinforcing the view that limited near-term upside remains after the deal announcement.
• Negative Sentiment: Multiple shareholder-investigation notices have emerged questioning whether the Apollo deal offers a fair price, which could create legal overhang and investor caution.

Emerald Company Profile

Emerald (NYSE: EEX) is a global provider of independent data, news and analytics for commodity, financial and energy markets. The company operates digital platforms that deliver real-time and historical price assessments, market commentary, research reports and risk-management tools. Its subscriber base spans traders, asset managers, corporate hedgers and financial institutions seeking timely intelligence to support trading, risk management and investment decisions.

Serving clients across North America, Europe and Asia-Pacific, Emerald covers a broad range of markets including metals, energy products, agriculture, freight, environmental emissions and treasury benchmarks.