Zacks Investment Research lowered shares of PS Business Parks (NYSE:PSB) from a hold rating to a sell rating in a research report sent to investors 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.”
Several other analysts also recently commented on the stock. JPMorgan Chase & Co. raised shares of PS Business Parks from an underweight rating to a neutral rating and set a $122.00 target price for the company in a research report on Friday, June 15th. Wells Fargo & Co boosted their target price on shares of 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.
PS Business Parks (NYSE:PSB) last posted its earnings results on Tuesday, July 24th. The real estate investment trust reported $0.43 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.56 by ($0.13). The business had revenue of $101.82 million during the quarter, compared to the consensus estimate of $103.05 million. PS Business Parks had a return on equity of 23.01% and a net margin of 54.22%. On average, research analysts expect that PS Business Parks will post 6.37 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Thursday, September 27th. Shareholders of record on Wednesday, September 12th were given a $1.05 dividend. This represents a $4.20 annualized dividend and a yield of 3.32%. This is an increase from PS Business Parks’s previous quarterly dividend of $0.85. The ex-dividend date was Tuesday, September 11th. PS Business Parks’s payout ratio is currently 68.52%.
In related news, insider John W. Petersen sold 2,500 shares of the company’s stock in a transaction on Thursday, August 23rd. The shares were sold at an average price of $129.40, for a total transaction of $323,500.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Jennifer Holden Dunbar sold 2,789 shares of the company’s stock in a transaction 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 sale, the director now directly owns 1,721 shares of the company’s stock, valued at $220,597.78. The disclosure for this sale can be found here. Insiders sold 8,789 shares of company stock valued at $1,132,949 over the last three months. Insiders own 1.50% of the company’s stock.
Hedge funds and other institutional investors have recently bought and sold shares of the stock. Rhumbline Advisers boosted its holdings in shares of PS Business Parks by 2.2% during the 2nd quarter. Rhumbline Advisers now owns 72,504 shares of the real estate investment trust’s stock worth $9,317,000 after buying an additional 1,529 shares during the period. Aperio Group LLC boosted its holdings in shares of PS Business Parks by 4.9% during the 2nd quarter. Aperio Group LLC now owns 9,418 shares of the real estate investment trust’s stock worth $1,210,000 after buying an additional 440 shares during the period. Quantum Capital Management bought a new stake in shares of PS Business Parks during the 2nd quarter worth $218,000. Sumitomo Mitsui Trust Holdings Inc. boosted its holdings in shares of PS Business Parks by 9.1% during the 2nd quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 20,397 shares of the real estate investment trust’s stock worth $2,621,000 after buying an additional 1,700 shares during the period. Finally, Bank of Montreal Can bought a new stake in shares of PS Business Parks during the 2nd quarter worth $6,499,000. 71.22% of the stock is owned by institutional investors and hedge funds.
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.
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