Zacks Investment Research Downgrades VEREIT (VER) to Sell

VEREIT (NYSE:VER) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Thursday.

According to Zacks, “VEREIT, Inc. is a real estate operating company. The Company owns and manages a diversified portfolio of retail, restaurant, office and industrial real estate assets. VEREIT, Inc., formerly known as American Realty Capital Properties Inc., is based in Phoenix, United States. “

A number of other equities analysts have also weighed in on the company. ValuEngine lowered VEREIT from a “buy” rating to a “hold” rating in a research note on Friday, February 2nd. JMP Securities lowered their target price on VEREIT from $9.50 to $9.00 and set a “market outperform” rating on the stock in a research note on Friday, February 23rd. Finally, Mizuho reiterated a “hold” rating and set a $7.00 target price on shares of VEREIT in a research note on Friday, March 2nd. Three analysts have rated the stock with a sell rating, two have assigned a hold rating and one has assigned a buy rating to the stock. The stock has a consensus rating of “Hold” and a consensus price target of $8.42.

NYSE VER traded down $0.04 during trading hours on Thursday, hitting $7.00. 168,049 shares of the company traded hands, compared to its average volume of 8,638,046. VEREIT has a twelve month low of $6.52 and a twelve month high of $8.75. The company has a debt-to-equity ratio of 0.64, a quick ratio of 0.35 and a current ratio of 0.35. The stock has a market capitalization of $6.74 billion, a PE ratio of 10.00 and a beta of 0.54.

VEREIT (NYSE:VER) last issued its quarterly earnings results on Friday, May 4th. The financial services provider reported $0.01 EPS for the quarter, missing the consensus estimate of $0.18 by ($0.17). VEREIT had a net margin of 3.78% and a return on equity of 0.94%. The company had revenue of $290.60 million for the quarter, compared to analyst estimates of $299.80 million. During the same period last year, the company posted $0.19 earnings per share. The business’s revenue for the quarter was down 1.2% on a year-over-year basis. research analysts forecast that VEREIT will post 0.69 EPS for the current year.

Several hedge funds and other institutional investors have recently made changes to their positions in the company. BlackRock Inc. increased its stake in shares of VEREIT by 0.8% during the first quarter. BlackRock Inc. now owns 81,975,289 shares of the financial services provider’s stock worth $570,549,000 after purchasing an additional 618,501 shares during the period. Thompson Siegel & Walmsley LLC increased its stake in VEREIT by 44.9% during the 1st quarter. Thompson Siegel & Walmsley LLC now owns 24,414,176 shares of the financial services provider’s stock worth $169,923,000 after acquiring an additional 7,567,252 shares during the period. LSV Asset Management increased its stake in VEREIT by 11.2% during the 1st quarter. LSV Asset Management now owns 19,835,100 shares of the financial services provider’s stock worth $138,052,000 after acquiring an additional 1,991,700 shares during the period. Long Pond Capital LP increased its stake in VEREIT by 538.8% during the 4th quarter. Long Pond Capital LP now owns 17,691,863 shares of the financial services provider’s stock worth $137,820,000 after acquiring an additional 14,922,313 shares during the period. Finally, Centersquare Investment Management LLC bought a new position in VEREIT during the 1st quarter worth $120,528,000. Institutional investors own 85.69% of the company’s stock.

About VEREIT

VEREIT is a full-service real estate operating company which owns and manages one of the largest portfolios of single-tenant commercial properties in the U.S. The Company has a total asset book value of $14.7 billion including approximately 4,100 properties and 94.4 million square feet. VEREIT's business model provides equity capital to creditworthy corporations in return for long-term leases on their properties.

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