PS Business Parks (NYSE:PSB) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Tuesday.
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.”
PSB has been the subject of a number of other research reports. JPMorgan Chase & Co. raised PS Business Parks from an “underweight” rating to a “neutral” rating and set a $122.00 price target for the company in a research report on Friday, June 15th. Wells Fargo & Co boosted their price target on 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.
PSB opened at $124.32 on Tuesday. The firm has a market cap of $3.47 billion, a P/E ratio of 20.28, a PEG ratio of 3.99 and a beta of 0.47. PS Business Parks has a 1 year low of $107.91 and a 1 year high of $137.45. The company has a quick ratio of 0.50, a current ratio of 0.50 and a debt-to-equity ratio of 0.01.
PS Business Parks (NYSE:PSB) last announced its quarterly earnings results on Tuesday, July 24th. The real estate investment trust reported $0.43 earnings per share for the quarter, missing analysts’ consensus estimates of $0.56 by ($0.13). PS Business Parks had a return on equity of 23.01% and a net margin of 54.22%. The company had revenue of $101.82 million during the quarter, compared to analyst estimates of $103.05 million. As a group, analysts predict that PS Business Parks will post 6.37 earnings per share for the current year.
In related news, insider John W. Petersen sold 3,500 shares of the business’s stock in a transaction dated Friday, August 10th. The stock was sold at an average price of $129.13, for a total transaction of $451,955.00. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, Director Jennifer Holden Dunbar sold 2,789 shares of the business’s stock in a transaction dated Thursday, August 2nd. The shares were sold at an average price of $128.18, for a total value of $357,494.02. Following the transaction, the director now owns 1,721 shares in the company, 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 in the last ninety days. Insiders own 1.50% of the company’s stock.
A number of institutional investors and hedge funds have recently modified their holdings of the stock. Aperio Group LLC increased its stake in PS Business Parks by 4.9% during the second quarter. Aperio Group LLC now owns 9,418 shares of the real estate investment trust’s stock valued at $1,210,000 after acquiring an additional 440 shares during the period. Royal Bank of Canada increased its stake in PS Business Parks by 5.4% during the first quarter. Royal Bank of Canada now owns 9,557 shares of the real estate investment trust’s stock valued at $1,080,000 after acquiring an additional 487 shares during the period. Bessemer Group Inc. increased its stake in PS Business Parks by 3.2% during the second quarter. Bessemer Group Inc. now owns 16,000 shares of the real estate investment trust’s stock valued at $2,056,000 after acquiring an additional 500 shares during the period. Asset Management One Co. Ltd. increased its stake in PS Business Parks by 0.9% during the first quarter. Asset Management One Co. Ltd. now owns 55,600 shares of the real estate investment trust’s stock valued at $6,285,000 after acquiring an additional 518 shares during the period. Finally, Sei Investments Co. increased its stake in PS Business Parks by 1.6% during the second quarter. Sei Investments Co. now owns 37,744 shares of the real estate investment trust’s stock valued at $4,850,000 after acquiring an additional 592 shares during the period. Hedge funds and other institutional investors own 71.22% of the company’s stock.
PS Business Parks Company Profile
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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