Zacks Investment Research Downgrades General Growth Properties, Inc. (GGP) to Sell
General Growth Properties, Inc. (NYSE:GGP) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Monday.
According to Zacks, “Shares of GGP underperformed the Zacks categorized REIT and Equity Trust – Retail industry in the last one month. Admittedly, mall traffic continues to suffer with online purchases growing by leaps and bounds. These have made retailers reconsider their footprint and eventually opt for store closures in recent times. Also, amid high competition, a number of retailers are filing bankruptcy. This has emerged as a pressing concern for retail REIT like GGP as such moves are curtailing demand for the retail real estate space considerably. Though the company is making efforts to counter the pressure through various initiatives, the implementation of such measures requires a decent upfront cost and therefore, is likely to limit any robust growth in its profit margins in the near term. Also, rate hike have added to the company’s woes.”
Several other brokerages have also recently weighed in on GGP. Stifel Nicolaus began coverage on shares of General Growth Properties in a research note on Friday. They set a “buy” rating and a $27.00 price target on the stock. ValuEngine upgraded shares of General Growth Properties from a “hold” rating to a “buy” rating in a research note on Thursday, May 11th. Barclays PLC dropped their price target on shares of General Growth Properties from $25.00 to $24.00 and set an “equal weight” rating on the stock in a research note on Friday, June 9th. BidaskClub upgraded shares of General Growth Properties from a “sell” rating to a “hold” rating in a research note on Saturday, June 17th. Finally, Mizuho cut shares of General Growth Properties from a “buy” rating to a “neutral” rating and dropped their price target for the stock from $30.00 to $24.50 in a research note on Tuesday, May 30th. Three research analysts have rated the stock with a sell rating, six have given a hold rating and eight have issued a buy rating to the stock. The company has an average rating of “Hold” and a consensus target price of $28.96.
General Growth Properties (NYSE GGP) traded up 0.64% during midday trading on Monday, reaching $23.74. 1,596,147 shares of the company traded hands. General Growth Properties has a 12 month low of $21.05 and a 12 month high of $32.10. The firm has a market capitalization of $21.00 billion, a PE ratio of 18.99 and a beta of 0.77. The company’s 50-day moving average price is $23.15 and its 200 day moving average price is $23.91.
General Growth Properties (NYSE:GGP) last posted its quarterly earnings data on Monday, May 1st. The real estate investment trust reported $0.11 EPS for the quarter, missing the Zacks’ consensus estimate of $0.36 by $0.25. General Growth Properties had a net margin of 52.21% and a return on equity of 14.38%. The company had revenue of $566.33 million for the quarter, compared to analyst estimates of $561.66 million. During the same period in the prior year, the company earned $0.40 EPS. The company’s revenue was down 6.7% compared to the same quarter last year. On average, equities analysts anticipate that General Growth Properties will post $0.52 earnings per share for the current year.
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A number of hedge funds have recently made changes to their positions in the stock. Renaissance Technologies LLC bought a new stake in shares of General Growth Properties during the fourth quarter worth about $11,116,000. Madison International Realty Holdings LLC bought a new stake in shares of General Growth Properties during the first quarter worth about $17,758,000. National Pension Service increased its stake in shares of General Growth Properties by 16.7% in the first quarter. National Pension Service now owns 537,999 shares of the real estate investment trust’s stock worth $12,342,000 after buying an additional 77,033 shares in the last quarter. Norinchukin Bank The increased its stake in shares of General Growth Properties by 7.1% in the first quarter. Norinchukin Bank The now owns 37,954 shares of the real estate investment trust’s stock worth $880,000 after buying an additional 2,531 shares in the last quarter. Finally, Denali Advisors LLC bought a new stake in shares of General Growth Properties during the first quarter worth about $3,412,000. Institutional investors own 92.20% of the company’s stock.
About General Growth Properties
GGP Inc (GGP), formerly General Growth Properties, Inc, is a self-administered and self-managed real estate investment trust (REIT). The Company operates as a holding company, which is engaged in the operation, development and management of retail and other rental properties, primarily regional malls.
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