Zacks Investment Research Upgrades Taubman Centers, Inc. (TCO) to Hold
Taubman Centers, Inc. (NYSE:TCO) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Monday.
According to Zacks, “Shares of Taubman Centers have underperformed its industry, year to date. However, the stock has seen the Zacks Consensus Estimate for current-year funds from operations (FFO) per share being revised upward in the past seven days. Notably, its better-than expected performance in the second quarter reflected substantial lease cancellation income and higher rents, together with lesser operating and general and administrative costs. Its focus on implementing cost-saving initiatives is likely to support FFO per share, going forward. However, Taubman Centers’ performance in the near term is anticipated to be affected by the choppy retail real estate environment. Amid significant competition and growing online purchases, mall traffic continues to suffer. These have led to significant store closures and bankruptcy filing by retailers. Also, hike in interest rates and unfavorable foreign currency movements increase its risks.”
A number of other brokerages have also commented on TCO. BidaskClub lowered Taubman Centers from a “buy” rating to a “hold” rating in a research note on Saturday, August 5th. KeyCorp dropped their price target on Taubman Centers from $85.00 to $79.00 and set an “overweight” rating for the company in a research note on Wednesday, June 28th. ValuEngine lowered Taubman Centers from a “buy” rating to a “hold” rating in a research note on Friday, June 2nd. Boenning Scattergood reaffirmed a “hold” rating on shares of Taubman Centers in a research note on Monday, July 31st. Finally, Morgan Stanley reaffirmed an “equal weight” rating and issued a $56.00 price target (down previously from $71.00) on shares of Taubman Centers in a research note on Saturday, June 3rd. Ten analysts have rated the stock with a hold rating and three have given a buy rating to the company. The company has an average rating of “Hold” and a consensus price target of $73.57.
Shares of Taubman Centers (TCO) traded down 2.42% during trading on Monday, reaching $52.07. 166,864 shares of the company traded hands. The firm has a market capitalization of $3.16 billion, a price-to-earnings ratio of 40.24 and a beta of 0.49. The company has a 50 day moving average price of $56.91 and a 200 day moving average price of $61.94. Taubman Centers has a 12-month low of $51.15 and a 12-month high of $80.86.
Taubman Centers (NYSE:TCO) last announced its quarterly earnings results on Thursday, July 27th. The real estate investment trust reported $0.86 EPS for the quarter, topping analysts’ consensus estimates of $0.84 by $0.02. Taubman Centers had a negative return on equity of 110.46% and a net margin of 14.71%. The company had revenue of $154.68 million during the quarter, compared to analyst estimates of $142.16 million. During the same quarter last year, the firm posted $1.04 earnings per share. The firm’s revenue was down 2.6% on a year-over-year basis. On average, equities analysts predict that Taubman Centers will post $1.08 EPS for the current year.
In other news, Director Myron E. Ullman III acquired 12,325 shares of the stock in a transaction on Wednesday, August 9th. The stock was acquired at an average price of $56.90 per share, with a total value of $701,292.50. Following the completion of the transaction, the director now owns 16,646 shares of the company’s stock, valued at approximately $947,157.40. The purchase was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 31.20% of the company’s stock.
A number of institutional investors have recently made changes to their positions in the stock. Meag Munich Ergo Kapitalanlagegesellschaft raised its position in shares of Taubman Centers by 151.4% in the third quarter. Meag Munich Ergo Kapitalanlagegesellschaft now owns 70,400 shares of the real estate investment trust’s stock valued at $4,349,000 after buying an additional 42,400 shares in the last quarter. Nisa Investment Advisors raised its position in shares of Taubman Centers by 146.1% in the fourth quarter. Nisa Investment Advisors now owns 30,320 shares of the real estate investment trust’s stock valued at $2,326,000 after buying an additional 18,000 shares in the last quarter. Sarasin & Partners raised its position in shares of Taubman Centers by 2.1% in the fourth quarter. Sarasin & Partners now owns 39,446 shares of the real estate investment trust’s stock valued at $3,026,000 after buying an additional 807 shares in the last quarter. KAMES CAPITAL plc purchased a new position in shares of Taubman Centers during the fourth quarter valued at approximately $1,581,000. Finally, Strs Ohio raised its position in shares of Taubman Centers by 210.6% in the fourth quarter. Strs Ohio now owns 297,395 shares of the real estate investment trust’s stock valued at $22,816,000 after buying an additional 201,650 shares in the last quarter. 98.53% of the stock is owned by institutional investors and hedge funds.
About Taubman Centers
Taubman Centers, Inc is a self-administered and self-managed real estate investment trust (REIT). The Company’s segment is focused on owning, developing and managing regional shopping centers. The Taubman Realty Group Limited Partnership (the Operating Partnership or TRG) is majority-owned partnership subsidiary of the Company that owns direct or indirect interests in all of its real estate properties.
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