WINDSOR, Conn. - SS&C Technologies Holdings, Inc. (NASDAQ: SSNC) announced on Wednesday that its Board of Directors has approved an increase in the company's quarterly dividend. The dividend, which has been raised from $0.24 to $0.25 per share, is scheduled to be paid on September 16, 2024, to shareholders who are on record as of September 3, 2024.
The decision to increase the dividend follows a reported growth in net cash from operating activities, which reached $385 million in the second quarter, marking a 16.8% increase from the same period the previous year. Bill Stone, Chairman and CEO of SS&C, expressed the company's commitment to creating long-term shareholder value. Stone cited the dividend increase as part of SS&C's capital allocation strategy and mentioned the company's prudent cash flow management in light of future opportunities.
SS&C Technologies, founded in 1986, operates globally, providing services and software to the financial services and healthcare sectors. Headquartered in Windsor, Connecticut, SS&C serves approximately 20,000 organizations, ranging from large corporations to small and mid-sized firms.
This dividend announcement is seen as a sign of SS&C's financial health and its ability to generate positive cash flow, which allows for the return of capital to shareholders. The information for this report is based on a press release statement from SS&C Technologies Holdings, Inc.
In other recent news, SS&C Technologies Holdings, Inc. reported a significant increase in its year-over-year revenue growth, reaching 6.4%, the highest rate since 2021. The company's financial performance this quarter has surpassed both RBC Capital's and Wall Street's expectations, with notable achievements in revenue, adjusted EBITDA, and adjusted EPS. In the second quarter of 2024 alone, the company repurchased $227 million worth of shares, indicating management's confidence in the company's financial health and future prospects. Furthermore, SS&C Technologies' management has expressed an ongoing interest in pursuing mergers and acquisitions, particularly those that complement its existing operations. This decision follows RBC Capital's adjustment of its outlook on SS&C Technologies, increasing the price target to $75 from the previous $72, while maintaining an Outperform rating. Needham also lifted its price target for SS&C from $74.00 to $81.00, maintaining a Buy rating on the stock. These are recent developments that indicate a robust approach to growth and client service. SS&C Technologies anticipates a lower Q4 organic growth due to tough year-over-year comparisons but is confident in achieving high single-digit organic revenue growth in the mid-term. The company is focusing on acquisitions that provide attractive returns and expects to close several smaller deals along with a potential substantial acquisition.
InvestingPro Insights
Following the recent dividend increase announcement by SS&C Technologies Holdings, Inc. (NASDAQ: SSNC), investors may be interested in additional financial insights and metrics provided by InvestingPro. According to InvestingPro, SS&C has a commendable track record of raising its dividend, having done so for 7 consecutive years, which underscores its commitment to shareholder returns. Moreover, the company has maintained dividend payments for 11 consecutive years, a testament to its financial resilience and prudent cash management.
InvestingPro data highlights SS&C's robust financial position, with a market capitalization of $18.03 billion and a price-to-earnings (P/E) ratio of 25.8. This valuation reflects the company's growth expectations and profitability, as indicated by a gross profit margin of 49.38% over the last twelve months as of Q2 2024. Additionally, the company's revenue has seen a growth of 5.19% over the same period, signaling a healthy expansion trajectory.
Investors considering SS&C's stock will find that it generally trades with low price volatility, offering a degree of stability in a portfolio. The stock is also trading near its 52-week high, with a price percentage of 99.39% of that peak, highlighting the positive momentum it has experienced recently. For those seeking more in-depth analysis and additional InvestingPro Tips on SS&C Technologies, there are 12 more tips available at InvestingPro, which can offer further insights into the company's performance and potential investment value.
With the next earnings date set for October 24, 2024, stakeholders and potential investors can look forward to more detailed financial results and strategic directions from SS&C. The company's recent performance and strategic dividend increase are key indicators of its commitment to delivering shareholder value and its confidence in sustaining growth and profitability.
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