Public Storage (PSA) Downgraded by Zacks Investment Research to “Sell”
Public Storage (NYSE:PSA) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Wednesday.
According to Zacks, “Estimates have been stable ahead of Public Storage’s Q3 earnings release, scheduled for Oct 26. The company has mixed record of earnings surprises in recent quarters. Nevertheless, the company is a recognized and established name in the self-storage industry in the U.S. Its strong presence in key cities serves as a key growth driver. Acquisition initiatives are also expected to propagate growth. Yet, the company has been experiencing rising supply in some of its markets, which remains a concern for the demand of its properties. Further, the company has a significant development and refurbishment pipeline that increases the operational risks and exposes the company to increasing construction costs and entitlement delays. Moreover, any hike in interest rate can also pose a challenge for the company.”
Other equities research analysts have also recently issued research reports about the stock. Jefferies Group reduced their target price on shares of Public Storage from $270.00 to $245.00 and set a “hold” rating for the company in a research note on Wednesday, August 10th. Bank of America Corp. cut shares of Public Storage from a “buy” rating to a “neutral” rating in a research note on Thursday, August 11th. KeyCorp cut shares of Public Storage from a “sector weight” rating to an “underweight” rating and set a $230.00 price target for the company. in a research note on Friday, July 15th. FBR & Co initiated coverage on shares of Public Storage in a research note on Thursday, June 23rd. They set a “market perform” rating and a $250.00 price target for the company. Finally, Evercore ISI upgraded shares of Public Storage from a “sell” rating to a “hold” rating and set a $228.00 price target for the company in a research note on Monday, August 22nd. Four research analysts have rated the stock with a sell rating, eleven have issued a hold rating and two have issued a buy rating to the stock. The stock has a consensus rating of “Hold” and an average target price of $244.38.
Shares of Public Storage (NYSE:PSA) opened at 215.83 on Wednesday. Public Storage has a 52-week low of $207.06 and a 52-week high of $277.60. The stock has a market cap of $37.43 billion, a P/E ratio of 34.16 and a beta of 0.61. The firm’s 50-day moving average price is $218.32 and its 200-day moving average price is $242.11.
Public Storage (NYSE:PSA) last released its earnings results on Thursday, July 28th. The real estate investment trust reported $2.34 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $2.40 by $0.06. Public Storage had a net margin of 52.53% and a return on equity of 25.44%. The company earned $634.20 million during the quarter, compared to the consensus estimate of $607.28 million. During the same quarter in the previous year, the business posted $2.17 EPS. The firm’s quarterly revenue was up 7.9% on a year-over-year basis. On average, equities research analysts forecast that Public Storage will post $9.64 earnings per share for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which was paid on Thursday, September 29th. Stockholders of record on Wednesday, September 14th were paid a $1.80 dividend. This represents a $7.20 annualized dividend and a dividend yield of 3.34%. The ex-dividend date of this dividend was Monday, September 12th. Public Storage’s dividend payout ratio (DPR) is presently 113.92%.
In related news, insider John Reyes sold 30,000 shares of the stock in a transaction that occurred on Wednesday, September 14th. The shares were sold at an average price of $215.41, for a total value of $6,462,300.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 14.20% of the stock is currently owned by insiders.
A number of large investors have recently added to or reduced their stakes in PSA. Zurich Insurance Group Ltd FI purchased a new stake in Public Storage during the first quarter valued at about $7,312,000. National Pension Service raised its stake in Public Storage by 4.2% in the first quarter. National Pension Service now owns 85,861 shares of the real estate investment trust’s stock valued at $23,683,000 after buying an additional 3,496 shares in the last quarter. AMP Capital Investors Ltd raised its stake in Public Storage by 1.8% in the first quarter. AMP Capital Investors Ltd now owns 829,298 shares of the real estate investment trust’s stock valued at $226,575,000 after buying an additional 14,589 shares in the last quarter. Reynolds Capital Management LLC purchased a new stake in Public Storage during the first quarter valued at about $221,000. Finally, Mariner Wealth Advisors LLC purchased a new stake in Public Storage during the first quarter valued at about $503,000. 77.99% of the stock is owned by institutional investors.
Public Storage Company Profile
Public Storage is a real estate investment trust. The Company’s business activities include the ownership and operation of self-storage facilities, which offer storage spaces for lease, generally on a month-to-month basis, for personal and business use, ancillary activities, such as merchandise sales and tenant reinsurance to the tenants at its self-storage facilities, as well as the acquisition and development of additional self-storage space.
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