Ituran Location and Control Ltd. (ITRN) saw its shares plummet 5.17% during intraday trading on Tuesday, as investor sentiment turned negative following the company's announcement of a significant reduction in its quarterly dividend.

The sharp decline came despite the company reporting strong first-quarter 2026 financial results, including a 19% year-over-year increase in revenue to $102.7 million and earnings per share of $0.85, which beat analyst expectations.

The primary driver of the stock's decline appears to be the company's decision to lower its quarterly dividend to $0.50 per share, down from $1.50 per share in the previous period. This substantial reduction likely overshadowed the positive earnings report, leading to the sell-off during the trading session.