SeaWorld Entertainment Inc. (NYSE:SEAS), a theme park and entertainment company yesterday announced a $0.10 per share dividend that will be payable on October 7 2016 to shareholders of record at close of business on September 29 2016. The $0.10 a share dividend is a cut from $0.21 per share and SeaWorld also announced that it will be suspending any future payments after the current planned dividend payment in October.
SeaWorld Entertainment, Inc. CEO’s Comments
We believe our 5-point strategy to stabilize the business to drive sustainable growth is taking hold, and we are optimistic about SeaWorld’s long-term future. After careful and thorough deliberation, the Board has determined that, consistent with the financial discipline pillar of the company’s strategy, the best way to support the long-term development of the business and deliver value to shareholders is to suspend future dividends at this time. Doing so will give us the greatest flexibility to deploy capital to the opportunities that offer the greatest long term returns to our shareholders. In the near-term, we believe that returning capital from the current reduced dividend payment by opportunistically buying back SeaWorld shares, offers the best return to shareholders. In the longer term, we will remain disciplined and regularly assess our allocation of capital, said Joel Manby, President and Chief Executive Officer of the company. PR Newswire
Technical Analysis
SEAS opened trading yesterday at $12.70 which was up from the previous days trading of $12.62. SEAS closed trading yesterday at $12.69 and crashed down after market to $11.74, equivalent to a 7% decrease from the closing price. Taking a look at the daily chart we can see that we are in unchartered territory as SEAS is trading at all time lows at $11.74. Taking a closer look at the daily chart we can see that SEAS has been in an overall downward trend dating back to April 13th when it traded at $21.65. SEAS has a float of 63.57 million shares and traded below the normal daily trading volume on Monday. For trading purposes, I would like to see SEAS open trading on Tuesday below $12.00 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap down.
Company Profile
SeaWorld Entertainment, Inc. operates as a theme park and entertainment company in the United States. It operates marine-life theme park under the SeaWorld brand name in San Diego, Orlando, and San Antonio; Busch Gardens theme parks, which are family-oriented destinations with foreign geographic settings in Tampa and Williamsburg; Discovery Cove marine life theme park in Langhorne; and Sesame Place, a seasonal park in Langhorne. The company also operates water parks under the Aquatica brand name in Orlando, San Antonio, and San Diego; Water Country USA name in Williamsburg; and the Adventure Island name in Tampa. In addition, it operates its theme park under Shamu and Sea Rescue brand names. The company owns and operates 11 destination and regional theme parks. The company was formerly known as SW Holdco, Inc. and changed its name to SeaWorld Entertainment, Inc. in December 2012. SeaWorld Entertainment, Inc. was founded in 1959 and is headquartered in Orlando, Florida.