HANOVER, Pa. - Utz Brands, Inc. (NYSE: UTZ), a prominent U.S. manufacturer of branded salty snacks, has declared a regular quarterly cash dividend for its Class A Common Stock. The payment, amounting to approximately $0.059 per share, is slated for distribution on July 3, 2024, to shareholders on record as of June 17, 2024.
The dividend is part of a broader financial strategy, funded through cash distributions by Utz Brands Holdings, LLC to Utz and other common unit holders on a pro-rata basis. Additionally, an extra cash dividend totaling about $1.7 million, or roughly $0.0210 per share, is planned, derived from the excess of tax distribution paid by Utz Brands Holdings over the corporate taxes due by the company.
Utz Brands noted that the future issuance of quarterly or additional dividends will be at the discretion of its Board of Directors. Decisions will be based on a variety of factors, including the company's operational performance and financial health.
Founded over a century ago, Utz Brands maintains a commitment to providing high-quality snack foods. Its diverse product range is available nationwide across various retail channels, with multiple manufacturing facilities across the United States supporting its operations.
The company's forward-looking statements suggest optimism but are subject to various risks and uncertainties that could impact business outcomes. This dividend declaration is based on a press release statement from Utz Brands, Inc.
In other recent news, Utz Brands has been the focus of several analyst adjustments following a strong start to the fiscal year. The company reported a 27% growth in adjusted earnings per share and a 7.4% increase in adjusted EBITDA, leading to an upward revision of its adjusted EPS outlook. These developments have prompted DA Davidson to raise Utz Brands' stock target to $21, citing the company's strategic successes and positive market expectations.
Similarly, Mizuho Securities has increased its price target on Utz Brands to $24, maintaining a Buy rating. The firm noted the company's first-quarter earnings, highlighting a positive trend in productivity, and expects continued EBITDA growth through fiscal year 2025. Mizuho's confidence in Utz Brands is further bolstered by the company's visibility into new distribution channels and improving promotional return on investment.
RBC Capital also raised its price target for Utz Brands to $23, maintaining an Outperform rating. The firm recognized the company's growth in tracked channels and dollar, pound, and unit share gains. RBC Capital's revised price target reflects optimism about Utz's growth trajectory and its potential to outperform in the market.
These recent developments underline the positive momentum Utz Brands has been experiencing. Investors will likely monitor the company's progress as it continues to capitalize on growth strategies and strengthen its position in the competitive snack industry.
InvestingPro Insights
Utz Brands' commitment to shareholder returns is underscored by its recent dividend announcement, reflecting a positive trend in its financial strategy. Notably, Utz has increased its dividend for four consecutive years, signaling confidence in its cash flow and financial stability.
Analysts are also showing confidence in Utz's potential, with four analysts revising their earnings estimates upwards for the upcoming period. This is a strong indicator that the company might be on track to meet or exceed market expectations. Additionally, the company's liquid assets surpass its short-term obligations, which is a reassuring sign for investors concerned about the company's liquidity and short-term financial health.
From a valuation standpoint, Utz's market cap stands at $2.62 billion, with a notable 40.73% price uptick over the last six months, reflecting robust investor interest. Although the company has been trading at a high EBITDA valuation multiple, with a P/E ratio (adjusted for the last twelve months as of Q1 2024) at -45.21, this is expected to improve as analysts predict Utz will be profitable this year.
For those looking for deeper insights and additional metrics, InvestingPro offers a comprehensive analysis, including additional InvestingPro Tips that can further guide investment decisions. Subscribers can uncover more about Utz's performance and potential using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With a total of 9 additional InvestingPro Tips available, investors can gain a more nuanced understanding of Utz's financial landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.