What a difference a day makes. On Wednesday, the Motley Fool and American City Business Journals were explaining to readers why Entercom Communications stock soared.
On Thursday, investors decided to enjoy a bit of a profit and sold some shares — even as the company announced a pretty decent quarterly dividend.
Entercom’s Board of Directors approved a quarterly dividend on the company’s stock of 9 cents per share. The dividend is payable on September 14 to shareholders of record as of the close of business on August 24. A portion of this distribution may be a return of capital, however, the amount is not known at this time.
That didn’t stop investors from selling Entercom shares on Thursday, cashing in on Wednesday’s big gain on word of a highly positive Q2.
At the Closing Bell, ETM was down 6%, to $7.85.
Entercom shares plunged following the release of disappointing Q1 results, largely impacted by financial troubles at US Traffic Network (USTN). Until May 7, Entercom shares weren’t below $9.25. Yesterday’s $8.35 closing price was the highest seen in three months.