MAXIMUS, Inc. (MMS) Raises Dividend to $0.25 Per Share

MAXIMUS, Inc. (NYSE:MMS) declared a quarterly dividend on Tuesday, October 16th, RTT News reports. Investors of record on Thursday, November 15th will be paid a dividend of 0.25 per share by the health services provider on Friday, November 30th. This represents a $1.00 annualized dividend and a yield of 1.56%. This is a boost from MAXIMUS’s previous quarterly dividend of $0.05.

MAXIMUS has decreased its dividend payment by an average of 9.1% per year over the last three years. MAXIMUS has a dividend payout ratio of 5.6% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect MAXIMUS to earn $3.41 per share next year, which means the company should continue to be able to cover its $0.18 annual dividend with an expected future payout ratio of 5.3%.

Shares of MMS opened at $64.22 on Wednesday. MAXIMUS has a 12 month low of $60.27 and a 12 month high of $72.71. The firm has a market cap of $4.18 billion, a P/E ratio of 21.19, a price-to-earnings-growth ratio of 2.51 and a beta of 1.12.

MAXIMUS (NYSE:MMS) last announced its earnings results on Thursday, August 9th. The health services provider reported $0.91 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.82 by $0.09. MAXIMUS had a net margin of 9.28% and a return on equity of 21.51%. The business had revenue of $597.90 million during the quarter, compared to analysts’ expectations of $591.91 million. During the same quarter in the prior year, the company posted $0.86 earnings per share. The firm’s revenue was down .4% on a year-over-year basis. Analysts forecast that MAXIMUS will post 3.24 EPS for the current fiscal year.

In other MAXIMUS news, General Counsel David Francis sold 6,220 shares of the stock in a transaction on Monday, October 1st. The shares were sold at an average price of $63.86, for a total value of $397,209.20. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, Vice Chairman Richard A. Montoni sold 15,000 shares of the stock in a transaction on Tuesday, September 18th. The shares were sold at an average price of $65.81, for a total transaction of $987,150.00. Following the completion of the sale, the insider now owns 493,476 shares of the company’s stock, valued at approximately $32,475,655.56. The disclosure for this sale can be found here. In the last quarter, insiders sold 73,722 shares of company stock valued at $4,788,284. Corporate insiders own 2.48% of the company’s stock.

MAXIMUS declared that its Board of Directors has approved a stock buyback program on Monday, June 25th that allows the company to buyback $200.00 million in shares. This buyback authorization allows the health services provider to reacquire up to 4.9% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its stock is undervalued.

Several research analysts recently commented on MMS shares. Canaccord Genuity increased their target price on shares of MAXIMUS from $64.00 to $67.00 and gave the stock a “hold” rating in a report on Wednesday, October 10th. Zacks Investment Research upgraded shares of MAXIMUS from a “sell” rating to a “hold” rating in a report on Tuesday, August 14th.

MAXIMUS Company Profile

MAXIMUS, Inc provides business process services (BPS) to government health and human services programs in the United States, the United Kingdom, Australia, Canada, Singapore, and Saudi Arabia. The company's Health Services segment offers various BPS, appeals, and assessments, as well as related consulting services for state, provincial, and national government programs comprising Medicaid, Children's Health Insurance Program, the Affordable Care Act, Health Insurance British Columbia, the Health Assessment Advisory Service, and Preadmission Screening and Resident Reviews.

Further Reading: Outstanding Shares

Dividend History for MAXIMUS (NYSE:MMS)

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