Taubman Centers (NYSE:TCO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Tuesday.

According to Zacks, “Shares of Taubman Centers have underperformed the industry it belongs to over the past three months. Moreover, the trend in estimate revisions of current-quarter funds from operations (FFO) per share does not indicate a favorable outlook for the company. Notably, declining mall traffic, bankruptcies and store closures have emerged as pressing concerns for the company. Also, hike in interest rates and unfavorable foreign currency movements increase its risks. However, the company’s solid retail real estate portfolio, high-quality retailers in its tenant roster and diligent restructuring measures has the capacity to support its long-term growth. Focus on implementing cost-saving initiatives also augurs well.”

Other research analysts have also issued research reports about the company. BMO Capital Markets set a $62.00 price target on Taubman Centers and gave the stock a “hold” rating in a report on Monday, July 30th. Scotiabank started coverage on Taubman Centers in a report on Tuesday, October 16th. They set an “underperform” rating on the stock. Citigroup lifted their price target on Taubman Centers from $61.00 to $66.00 and gave the stock a “neutral” rating in a report on Thursday, August 9th. Sandler O’Neill upgraded Taubman Centers from a “hold” rating to a “buy” rating and lifted their price target for the stock from $58.00 to $64.00 in a report on Monday, October 22nd. Finally, Evercore ISI lowered Taubman Centers from an “in-line” rating to an “underperform” rating and set a $63.00 price target on the stock. in a report on Monday, September 10th. They noted that the move was a valuation call. Five investment analysts have rated the stock with a sell rating, seven have given a hold rating and two have assigned a buy rating to the company’s stock. The company presently has an average rating of “Hold” and an average target price of $62.31.

Taubman Centers stock traded down $1.73 during mid-day trading on Tuesday, reaching $50.79. The stock had a trading volume of 21,417 shares, compared to its average volume of 574,640. Taubman Centers has a fifty-two week low of $50.36 and a fifty-two week high of $66.61. The stock has a market capitalization of $3.17 billion, a PE ratio of 13.73, a price-to-earnings-growth ratio of 3.56 and a beta of 0.64.

Taubman Centers (NYSE:TCO) last posted its earnings results on Monday, October 29th. The real estate investment trust reported $0.34 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.86 by ($0.52). Taubman Centers had a net margin of 14.42% and a negative return on equity of 45.76%. The company had revenue of $159.12 million during the quarter, compared to the consensus estimate of $159.68 million. During the same quarter in the prior year, the business earned $0.83 EPS. The firm’s revenue for the quarter was up 3.9% compared to the same quarter last year. As a group, analysts expect that Taubman Centers will post 3.8 earnings per share for the current fiscal year.

In other news, Director Jonathan Litt bought 1,000 shares of the stock in a transaction on Thursday, November 1st. The shares were purchased at an average cost of $55.21 per share, for a total transaction of $55,210.00. Following the completion of the purchase, the director now directly owns 2,653 shares in the company, valued at approximately $146,472.13. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Insiders own 31.20% of the company’s stock.

Several institutional investors and hedge funds have recently modified their holdings of the business. Nordea Investment Management AB purchased a new position in shares of Taubman Centers in the third quarter valued at $11,619,000. Cohen & Steers Inc. grew its position in shares of Taubman Centers by 434.6% in the third quarter. Cohen & Steers Inc. now owns 4,845,258 shares of the real estate investment trust’s stock valued at $289,892,000 after purchasing an additional 3,938,892 shares in the last quarter. Teachers Advisors LLC grew its position in shares of Taubman Centers by 8.1% in the third quarter. Teachers Advisors LLC now owns 233,500 shares of the real estate investment trust’s stock valued at $13,970,000 after purchasing an additional 17,411 shares in the last quarter. AQR Capital Management LLC grew its position in shares of Taubman Centers by 7.6% in the third quarter. AQR Capital Management LLC now owns 14,976 shares of the real estate investment trust’s stock valued at $896,000 after purchasing an additional 1,060 shares in the last quarter. Finally, Macquarie Group Ltd. grew its position in shares of Taubman Centers by 36.0% in the third quarter. Macquarie Group Ltd. now owns 26,450 shares of the real estate investment trust’s stock valued at $1,583,000 after purchasing an additional 7,000 shares in the last quarter.

About Taubman Centers

Taubman Centers is an S&P MidCap 400 Real Estate Investment Trust engaged in the ownership, management and/or leasing of 26 regional, super-regional and outlet shopping centers in the U.S. and Asia. Taubman's U.S.-owned properties are the most productive in the publicly held U.S. regional mall industry.

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