- Pulling the plug on a dividend payout isn't the type of thing that analysts and investors are likely to ignore.
- Macquarie sees short-term selling pressure on SeaWorld Entertainment (SEAS -5.1%), although it calls the action the right move. The firm lowers its estimate for second half EBITDA to $310M to $340M.
- FBR Capital notes the dividend removal was well-telegraphed and sticks with a $15 price target on the theme park operator.
- Janney Montgomery Scott isn't so kind in its assessment of the plan to buy back shares with the dividend funds. "While a dividend cut is not a complete surprise, our view is that a portion of the money could be better spent reinvesting in the business and building new attractions," writes analyst Tyler Batory.
- SeaWorld sunk to a post-IPO low of $11.77 earlier in the day. For those wondering, SeaWorld priced its IPO at $27 back in 2013.