Vipshop Holdings Shares Rise 5.3% After Dividend Declaration

Shares of Vipshop Holdings Limited (NYSE:VIPS) saw a significant increase of 5.3% during mid-day trading on a recent Tuesday following the company's announcement of a dividend payout. The shares reached a high of $15.00 before closing at $14.99. During this trading session, a total of 1,471,661 shares exchanged hands, which is a notable drop of 57% compared to the average trading volume of 3,434,619 shares. The stock had concluded its previous trading day at $14.23.

Vipshop has declared that the dividend will be distributed on Friday, April 25th. Shareholders who are on record as of Friday, April 11th, will receive a dividend of $0.43 per share, amounting to an attractive yield of 2.9%. The ex-dividend date for this payout will also be on April 11th. Currently, Vipshop's dividend payout ratio stands at 20.71%.

Recent Analyst Revisions

Several analysts have updated their evaluations of Vipshop shares recently. Barclays increased its target price for Vipshop from $19.00 to $20.00, upgrading the stock to an “overweight” rating in a report released on Tuesday. In addition, StockNews.com raised Vipshop’s rating from “hold” to “buy” in their report dated Friday, February 21st. Benchmark also reiterated a “hold” rating for Vipshop in their research report on Wednesday, November 20th. Conversely, Citigroup lowered their target price for the stock from $18.00 to $17.00 but maintained a “buy” rating in their analysis published on the same day. Overall, five analysts have rated the stock as “hold,” while three have given it a “buy” rating, resulting in an average rating of “Hold” with a consensus price target of $17.64 according to MarketBeat.

Vipshop’s Financial Standing

Vipshop holds a market capitalization of approximately $8.12 billion, with a price-to-earnings (P/E) ratio of 7.57 and a P/E/G ratio of 1.52. The company’s stock has a 50-day moving average of $14.08 and a 200-day moving average of $14.01. In the most recent quarterly earnings report released on Wednesday, February 26th, Vipshop reported earnings per share (EPS) of $0.65, which was $0.05 below the consensus expectation of $0.70. The company generated revenue of $4.55 billion during the quarter, significantly exceeding analysts’ forecasts of $3.82 billion. Vipshop also reported a return on equity of 20.89% and a net margin of 7.50%. Analysts project that Vipshop Holdings Limited will achieve an EPS of 1.95 for the current fiscal year.

Investor Participation

Several institutional investors have recently adjusted their stakes in Vipshop. Asset Management One Co. Ltd. has increased its shareholding by 2.0% in the third quarter, now owning 48,963 shares valued at $770,000 after acquiring an additional 954 shares. Atomi Financial Group Inc. boosted its holdings by 10.8% in the fourth quarter, bringing its total to 12,241 shares worth $165,000 after securing an extra 1,191 shares in the last quarter. Daiwa Securities Group Inc. raised its interest in the company by 5.7% during the fourth quarter as well. Notably, Blue Trust Inc. expanded its position by 17.5% in the same quarter, now owning 9,972 shares valued at $134,000. Lastly, Nomura Asset Management Co. Ltd. lifted its holdings by 3.5%, resulting in ownership of 44,100 shares valued at $594,000. Overall, institutional investors currently own 48.82% of the total shares in the company.

Overview of Vipshop Holdings

Vipshop Holdings Limited operates various online retail platforms primarily in the People’s Republic of China. The company segments include Vip.com, Shan Shan Outlets, and others. Vipshop provides a variety of products, including womenswear, menswear, sportswear, footwear, accessories, products for babies and children, skincare and cosmetics, home goods, as well as supermarket items.

Vipshop, Stocks, Dividend