Greggs Shares Hit 52-Week High Following Dividend Announcement

Greggs plc (LON:GRG) shares soared to a new 52-week high on Tuesday, following the announcement of a dividend payout by the company. The stock reached a peak of 3,008 GBX (£38.69) before closing at 2,990 GBX (£38.46), with a volume of 29,390 shares traded. This represents a significant increase from the previous day's closing price of 2,936 GBX (£37.77).

The newly announced dividend, payable on Friday, 4th October, will see shareholders of record on Thursday, 5th September receive a 19 GBX (£0.24) dividend. The ex-dividend date is Thursday, 5th September. This translates to a yield of 0.65% and a payout ratio of 4,460.43%.

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Analyst Sentiment

Several brokerages have recently weighed in on Greggs, with mixed opinions emerging. Shore Capital reiterated a "house stock" rating on Tuesday, 14th May, while Royal Bank of Canada maintained an "overweight" rating and issued a price target of 3,335 GBX (£42.90) on Wednesday, 15th May. Berenberg Bank, however, reduced their price target from 3,390 GBX (£43.61) to 3,340 GBX (£42.96) on Tuesday, 14th May, while maintaining a "buy" rating for the company.

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Trading Performance

The stock currently sits at a 50-day moving average of 2,858.01 GBX and a 200-day moving average of 2,792.35 GBX. Greggs boasts a market capitalization of £3.09 billion, a P/E ratio of 2,146.76, a P/E/G ratio of 3.39, and a beta of 1.30. The company's financial health is further evidenced by its current ratio of 1.09, quick ratio of 0.88, and debt-to-equity ratio of 60.20.

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Insider Activity

In other Greggs news, insider Roisin Currie acquired 58 shares of the company's stock on Thursday, 13th June. The shares were purchased at an average price of 2,846 GBX (£36.61) per share, resulting in a total transaction value of £1,650.68 (£2,123.33). This insider purchase suggests confidence in the company's future prospects. Company insiders currently own 5.80% of the company's stock.

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About Greggs

Greggs plc is a leading food-on-the-go retailer in the UK, offering a diverse range of fresh bakery products, sandwiches, and drinks. The company also supplies its products to franchise and wholesale partners for sale in their outlets. Additionally, Greggs is involved in property holding, non-trading, and trustee businesses.

The company's recent share price surge and positive insider activity demonstrate strong investor confidence in Greggs' continued success. With a robust financial position and a loyal customer base, the company appears well-positioned for continued growth in the future.