Pershing Square (NYSE:PS) Stock Falls 7.1% – Should You Sell?

Pershing Square Inc. (NYSE:PS) shares were down 7.1% on Tuesday. The company traded as low as $48.14 and last traded at $48.26. 77,315 shares changed hands during mid-day trading, a decline of 81% from the average daily volume of 409,561 shares. The stock had previously closed at $51.95.

Analyst Ratings Changes

PS has been the subject of several research reports. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Pershing Square in a report on Wednesday, November 4th. JonesTrading downgraded shares of Pershing Square from a “buy” rating to a “hold” rating in a report on Tuesday, September 29th. Royal Bank Of Canada increased their price objective on shares of Pershing Square from $44.00 to $45.00 and gave the company a “sector perform” rating in a research report on Wednesday, November 4th. Bank of America cut shares of Pershing Square from a “neutral” rating to an “underperform” rating and cut their target price for the stock from $54.00 to $38.00 in a research note on Tuesday, October 13th. Finally, Wells Fargo & Company reduced their target price on shares of Pershing Square from $41.00 to $40.00 and set an “underweight” rating for the company in a report on Thursday, October 15th. One analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and four have given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Reduce” and an average target price of $44.11.

Pershing Square Trading Down 13.6%

The company’s 50-day moving average is $47.39. The stock has a market capitalization of $17.96 billion and a P/E ratio of 320.79.

Pershing Square (NYSE:PS) last announced its earnings results on Monday, November 2nd. The company reported $0.12 earnings per share for the quarter, missing analysts’ consensus estimates of $0.13 by ($0.01). The firm had revenue of $56.60 million during the quarter. As a group, sell-side analysts expect that Pershing Square Inc. will post 0.50 EPS for the current fiscal year.

Pershing Square Cuts Dividend

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

Institutional Investors Weigh In On Pershing Square

Hedge funds and other institutional investors have recently modified their holdings of the company. Rivernorth Capital Management LLC bought a new stake in shares of Pershing Square in the second quarter valued at about $14,787,000. Clal Insurance Enterprises Holdings Ltd bought a new position in Pershing Square during the second quarter worth about $9,858,000. Equitec Proprietary Markets LLC bought a new position in Pershing Square during the second quarter worth about $3,828,000. NewEdge Advisors LLC acquired a new stake in Pershing Square in the 2nd quarter worth about $1,702,000. Finally, Proficio Capital Partners LLC acquired a new stake in Pershing Square in the 2nd quarter worth about $1,459,000.

About Pershing Square

Pershing Square is an investment company associated with Pershing Square Capital Management, an alternative investment manager founded by Bill Ackman in 2004. The firm is based in New York and focuses on investing in a concentrated portfolio of publicly traded companies. Its investment approach combines fundamental research with active engagement with portfolio companies. Pershing Square has also operated investment vehicles that provide investors with exposure to its strategy. Bill Ackman is Pershing Square’s founder and chief executive.