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Is this stock’s huge 6.1% dividend too good to ignore?

In afternoon trade today, shares of leisure and entertainment business Ardent Leisure Group (ASX: AAD) are again trading lower, down nearly 5% at the time of writing.

Since reporting its half-year results less than a week ago, its share price has fallen a whopping 22%!

On February 18, the owner of Gold Coast theme parks Dreamworld and Water Water World, AMF and Kingpin Bowling, Goodlife Health Clubs and more, reported a 14.1% fall in revenues but a modest increase in its interim dividend, to 7 cents per share.

I for one was caught off guard by the poor results, particularly the lacklustre performance from its leisure business Goodlife Health Clubs.

Prior to the results, my discounted cash flow analysis suggested fair value for Ardent’s shares was slightly over $3.00.

Fortunately, I wasn’t the only one making such forecasts. Within two days of Ardent releasing its results, no less than six analysts had downgraded the stock.

The average 12-month ‘price target’ reduction was 17.8%, with the average of analysts’ forecasts now being just $2.51 per share.

Currently the market is pricing Ardent shares at $2.15. So, if analysts’ price targets are anything to go by, it could be getting closer to the buy zone.

Ardent director George Venardos thinks it’s in the buy zone already – he increased his stake in the company by a further 6,400 shares on February 19.

Based on projections for earnings per share of 13 cents, Ardent currently trades on a forward price-earnings ratio of 16 and trailing dividend yield of 6.1% unfranked.

If it keeps falling, Ardent could be worthy of further consideration.

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Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any of the mentioned companies. Owen welcomes your feedback on Google plus (see below) or you can follow him on Twitter @ASXinvest.