Zacks Investment Research downgraded shares of PS Business Parks (NYSE:PSB) from a hold rating to a sell rating in a research report report published on Tuesday morning.
According to Zacks, “Shares of PS Business Parks have underperformed its industry in the past year. Further, the trend in estimate revision for current-year funds from operations (FFO) per share does not indicate a solid outlook for the company. Notably, unfavorable leasing environment in certain markets is expected to impact the company’s leasing performance. Further, supply is rising in certain submarkets and this could partly impede growth momentum. Moreover, stiff competition from other office and industrial asset owners in the market hampers its ability to attract and retain tenants at higher rents. Lastly, rate hike adds to its woes. Nonetheless, going forward, PS Business Parks is expected to benefit from healthy fundamentals in the flex and industrial asset categories.”
A number of other analysts have also recently weighed in on the company. Wells Fargo & Co increased their price objective on PS Business Parks from $121.00 to $131.00 and gave the stock a market perform rating in a research report on Thursday, August 9th. JPMorgan Chase & Co. raised PS Business Parks from an underweight rating to a neutral rating and set a $122.00 price objective for the company in a research report on Friday, June 15th.
Shares of NYSE PSB opened at $121.16 on Tuesday. The stock has a market capitalization of $3.47 billion, a P/E ratio of 19.77, a PEG ratio of 3.99 and a beta of 0.47. The company has a quick ratio of 0.50, a current ratio of 0.50 and a debt-to-equity ratio of 0.01. PS Business Parks has a 52-week low of $107.91 and a 52-week high of $137.45.
PS Business Parks (NYSE:PSB) last posted its quarterly earnings data on Tuesday, July 24th. The real estate investment trust reported $0.43 earnings per share for the quarter, missing analysts’ consensus estimates of $0.56 by ($0.13). PS Business Parks had a return on equity of 23.01% and a net margin of 54.22%. The company had revenue of $101.82 million for the quarter, compared to analyst estimates of $103.05 million. As a group, research analysts forecast that PS Business Parks will post 6.37 earnings per share for the current fiscal year.
The business also recently disclosed a quarterly dividend, which was paid on Thursday, September 27th. Shareholders of record on Wednesday, September 12th were given a dividend of $1.05 per share. This represents a $4.20 dividend on an annualized basis and a yield of 3.47%. This is a boost from PS Business Parks’s previous quarterly dividend of $0.85. The ex-dividend date of this dividend was Tuesday, September 11th. PS Business Parks’s dividend payout ratio (DPR) is presently 68.52%.
In other PS Business Parks news, Director Jennifer Holden Dunbar sold 2,789 shares of the stock in a transaction that occurred on Thursday, August 2nd. The stock was sold at an average price of $128.18, for a total transaction of $357,494.02. Following the completion of the sale, the director now directly owns 1,721 shares of the company’s stock, valued at approximately $220,597.78. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider John W. Petersen sold 3,500 shares of the stock in a transaction that occurred on Friday, August 10th. The stock was sold at an average price of $129.13, for a total value of $451,955.00. The disclosure for this sale can be found here. Insiders have sold a total of 8,789 shares of company stock valued at $1,132,949 over the last ninety days. 1.50% of the stock is owned by insiders.
Institutional investors have recently bought and sold shares of the business. Quantbot Technologies LP raised its stake in shares of PS Business Parks by 84.7% during the 1st quarter. Quantbot Technologies LP now owns 1,522 shares of the real estate investment trust’s stock worth $172,000 after buying an additional 698 shares in the last quarter. Everence Capital Management Inc. purchased a new position in shares of PS Business Parks during the 2nd quarter worth approximately $204,000. Connor Clark & Lunn Investment Management Ltd. purchased a new position in shares of PS Business Parks during the 2nd quarter worth approximately $209,000. Quantum Capital Management purchased a new position in shares of PS Business Parks during the 2nd quarter worth approximately $218,000. Finally, CIBC Asset Management Inc purchased a new position in shares of PS Business Parks during the 2nd quarter worth approximately $221,000. 71.22% of the stock is owned by institutional investors.
About PS Business Parks
PS Business Parks, Inc, a member of the S&P SmallCap 600, is a real estate investment trust (?REIT?) that acquires, develops, owns and operates commercial properties, primarily multi-tenant industrial, flex and office space. As of June 30, 2018, the Company wholly owned 28.3 million rentable square feet with approximately 5,000 commercial customers in six states and a 95.0% interest in a 395-unit apartment complex.
Further Reading: Marijuana Stocks Investing Considerations
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for PS Business Parks Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PS Business Parks and related companies with MarketBeat.com's FREE daily email newsletter.