Richmond's Share Sale: Richmond Investment Services, LLC sold 206,264 shares of the First Trust SMID Cap Rising Dividend Achievers ETF (SDVY), reducing its position value by $6.31 million and lowering its stake to 354,450 shares valued at $13.5 million, which now represents 2.5% of their assets under management (AUM).
Performance and Strategy: The sale was part of a portfolio rebalancing strategy, as Richmond capitalized on a recent 10% rise in the ETF over six months, despite SDVY lagging behind the S&P 500 since its 2017 debut.
Investment Characteristics: SDVY focuses on small- and mid-cap U.S. equities with a strong track record of dividend increases, offering a more attractive P/E ratio of 16 compared to the S&P 500's 29, along with a higher dividend yield.
Market Context: The ETF's expense ratio of 0.59% is considered high relative to standard tracking indexes, and while some investors may prefer to select individual stocks, SDVY provides a diversified investment option for those seeking exposure to dividend growth in the SMID-cap segment.
Wall Street analysts forecast SDVY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SDVY is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Wall Street analysts forecast SDVY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SDVY is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
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Current: 40.940
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Current: 40.940
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
