Historically Hammond has been a good performer but not so much in the past 12 months. I know you continued to like the name but can you explain the stock based compensation and who gets what? There is a pattern developing where this stock gets clipped because of SBC. Will this be a negative going forward or will it level out eventually and not have such an impact on the Share Price.
Thank you for your great service as always
Marty
We have a response posted here.
But, we also wanted to display how the stock typically performs in the following three month period when SBC represents either a large percentage of earnings or a low percentage of earnings.
When SBC is a small percentage of earnings for the quarter, the forward three month returns for HPS.A have historically been strong. When it is a high percentage (ie. Q1 2024), the future performance was weak, which subsequently led to a negative SBC charge in Q2 2024, where the stock rallied over the next three months. Then April 2025 took place, the stock declined, SBC was negative for the quarter, and the stock rallied into this summer, which then led to a high SBC charge, where we can see forward performance begin to falter again.
