Why is the JB Hi-Fi share price slumping today?

The JB Hi-Fi Limited (ASX: JBH) share price is falling wayside on Thursday despite no announcements from the company.

The S&P/ASX 200 Index (ASX: XJO) is up 0.78% during midday trade, but can't seem to get JB Hi-Fi shares over the line.

At the time of writing, the retailer's shares are swapping hands at $41.81, down 4.57%.

Let's take a look at what is causing the share to fall today.

What's going on with JB Hi-Fi shares?

Following the retailer's full-year results last week, investors are selling off JB Hi-Fi shares as they go ex-dividend today.

This means if you purchased the company's shares yesterday or before and owned them at today's market open, you'll be eligible for the latest dividend.

When a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because after securing the dividend, investors try to make a quick profit.

For those who are set to receive JB Hi-Fi's final dividend, a payment of $1.53 per share will be made on 9 September. The dividend is also fully franked.

This brings the FY2022 dividend to $3.16 per share, reflecting a 10.1% increase compared to the prior corresponding period.

The board has adopted a policy of monitoring the dividend payout ratio and targeting a payout ratio of 65% of NPAT. Whilst ensuring adequate capital is retained for the growth of the business, it also aims to deliver shareholder returns.

Are JB Hi-Fi shares a buy?

Following the company's 2022 financial scorecard, a number of brokers updated their outlook on JB Hi-Fi shares.

According to ANZ Share Investing, Jefferies downgraded its rating to underperform from hold. In addition, the broker cut its price target by 14% to $38.50 per JB Hi-Fi share. Based on the current price, this implies a downside of 8%.

On the other hand, Macquarie and Citi raised their price targets by 1% to $41.30, and 6.4% to $50, respectively.

Citi's bullish broker note implies an upside of almost 20% from where JB Hi-Fi trades today.

JB Hi-Fi share price snapshot

For the first half of 2022, the JB Hi-Fi share price travelled sideways before sinking to a 52-week low of $36.69 in June. While there has been some recovery of late, it's still 36% off its all-time high of $56.85.

JB Hi-Fi has a price-to-earnings (P/E) ratio of 10.13 and commands a market capitalisation of approximately $4.57 billion.