Pershing Square (NYSE:PS) Stock Falls 7.5% – Here’s What Happened

Pershing Square Inc. (NYSE:PS)’s share price dropped 7.5% during mid-day trading on Tuesday. The stock traded as low as $49.42 and last traded at $50.15. Approximately 37,179 shares traded hands during trading, a decline of 91% from the average session volume of 416,353 shares. The stock had previously closed at $54.22.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on PS. Tigress Financial upped their price target on Pershing Square from $39.00 to $41.00 and gave the company a “neutral” rating in a research note on Thursday, September 3rd. Bank of America reiterated an “underperform” rating and issued a $38.00 price target (down from $54.00) on shares of Pershing Square in a research report on Tuesday. Wall Street Zen lowered shares of Pershing Square from a “hold” rating to a “sell” rating in a research note on Sunday. JonesTrading cut shares of Pershing Square from a “buy” rating to a “hold” rating in a report on Tuesday, September 29th. Finally, Weiss Ratings upgraded shares of Pershing Square from a “sell (d)” rating to a “sell (d+)” rating in a report on Tuesday, August 11th. One research analyst has rated the stock with a Buy rating, seven have given a Hold rating and four have given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus price target of $42.11.

Pershing Square Trading Down 13.3%

The company’s fifty day simple moving average is $44.49. The stock has a market capitalization of $18.80 billion and a P/E ratio of 335.71.

Pershing Square (NYSE:PS) last issued its quarterly earnings data on Wednesday, August 12th. The company reported $0.14 EPS for the quarter, topping the consensus estimate of $0.12 by $0.02. The business had revenue of $68.03 million for the quarter. Sell-side analysts predict that Pershing Square Inc. will post 0.55 EPS for the current fiscal year.

Pershing Square Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, October 20th. Shareholders of record on Monday, October 12th will be paid a $0.1030 dividend. The ex-dividend date of this dividend is Friday, October 9th. This is a negative change from Pershing Square’s previous quarterly dividend of $0.1220. This represents a $0.41 dividend on an annualized basis and a yield of 0.9%. Pershing Square’s payout ratio is presently 292.86%.

Institutional Investors Weigh In On Pershing Square

A number of hedge funds have recently modified their holdings of the business. Integrated Wealth Concepts LLC acquired a new stake in shares of Pershing Square during the second quarter worth about $132,000. Ancora Advisors LLC bought a new position in shares of Pershing Square during the 2nd quarter valued at about $302,000. Wedbush Securities Inc. acquired a new position in shares of Pershing Square in the 2nd quarter valued at approximately $529,000. Hsbc Holdings PLC acquired a new position in shares of Pershing Square in the 2nd quarter valued at approximately $775,000. Finally, Readystate Asset Management LP bought a new stake in Pershing Square during the 2nd quarter worth approximately $822,000.

About Pershing Square

Pershing Square USA, Ltd. is a closed-end investment company listed on the New York Stock Exchange under the symbol PS. The company is designed to provide investors with long-term capital appreciation through a concentrated portfolio of investments in publicly traded businesses.

The fund is managed by Pershing Square Capital Management, L.P., an investment management firm founded and led by William A. Ackman. Its investment approach generally emphasizes detailed fundamental research, activist engagement when appropriate, and ownership of a limited number of companies that the manager believes have durable business models, strong management teams, and long-term growth potential.

Pershing Square USA primarily focuses on publicly traded companies in the United States and other developed markets, with investment decisions centered on individual business fundamentals rather than broad market exposure.