Zacks Investment Research downgraded shares of DDR (NYSE:DDR) from a hold rating to a sell rating in a report released on Monday.
According to Zacks, “Shares of DDR Corp. underperformed the industry it belongs to in the past six months. The stock has seen the Zacks Consensus Estimate for funds from operations (FFO) per share for 2017 remaining stable, while the same for 2018 moving south in a month’s time. In December 2017, DDR announced the decision of its board of directors to spin-off a portfolio of 50 sellable assets into a separate public-traded REIT. The move will help the company streamline its portfolio and focus on core markets. Nevertheless, the choppy retail real estate environment, thanks to the shift in customers’ shopping preferences toward online purchases, remains a concern. Further, aggressive asset divestures have a dilutive effect on earnings. Rate hike add to the company’s woes. However, aggressive capital-recycling program and balance-sheet improvement efforts have the capability to drive its growth over the long term.”
Several other equities analysts have also recently weighed in on DDR. ValuEngine raised DDR from a hold rating to a buy rating in a research report on Monday, October 2nd. Boenning Scattergood cut DDR from a neutral rating to an under perform rating in a report on Tuesday, October 3rd. Mizuho set a $9.00 price target on DDR and gave the company a hold rating in a report on Monday, December 18th. Capital One Financial reaffirmed an equal weight rating on shares of DDR in a report on Friday, December 15th. Finally, Morgan Stanley reaffirmed an equal weight rating and issued a $8.25 price target on shares of DDR in a report on Thursday, December 14th. Two equities research analysts have rated the stock with a sell rating, twelve have given a hold rating and six have issued a buy rating to the company. DDR currently has an average rating of Hold and an average target price of $11.29.
DDR (NYSE:DDR) last posted its quarterly earnings data on Thursday, November 2nd. The real estate investment trust reported $0.30 earnings per share for the quarter, topping the consensus estimate of $0.27 by $0.03. DDR had a return on equity of 3.48% and a net margin of 1.11%. The business had revenue of $220.10 million during the quarter, compared to analysts’ expectations of $218.58 million. During the same quarter in the previous year, the firm earned $0.33 EPS. The firm’s revenue was down 10.2% compared to the same quarter last year. sell-side analysts predict that DDR will post 1.15 earnings per share for the current fiscal year.
The business also recently announced a quarterly dividend, which was paid on Friday, January 5th. Stockholders of record on Tuesday, December 12th were issued a $0.19 dividend. The ex-dividend date of this dividend was Monday, December 11th. This represents a $0.76 dividend on an annualized basis and a dividend yield of 9.15%. DDR’s payout ratio is presently -165.22%.
Several institutional investors and hedge funds have recently modified their holdings of the company. Cambridge Investment Research Advisors Inc. bought a new stake in DDR during the 2nd quarter worth approximately $111,000. 1st Global Advisors Inc. bought a new stake in DDR during the 2nd quarter worth approximately $131,000. Profund Advisors LLC grew its position in DDR by 25.9% during the 2nd quarter. Profund Advisors LLC now owns 15,228 shares of the real estate investment trust’s stock worth $138,000 after acquiring an additional 3,132 shares during the last quarter. Bridgewater Associates LP bought a new stake in DDR during the 2nd quarter worth approximately $143,000. Finally, Arrowstreet Capital Limited Partnership bought a new stake in DDR during the 2nd quarter worth approximately $149,000. 80.02% of the stock is owned by institutional investors and hedge funds.
DDR Company Profile
DDR Corp. is a self-administered and self-managed real estate investment trust. It operates through two segments: shopping centers and loan investments. It is in the business of acquiring, owning, developing, redeveloping, expanding, leasing and managing shopping centers. As of December 31, 2016, it owned and managed approximately 106 million total square feet of gross leasable area (GLA).
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