Zacks Investment Research downgraded shares of Regency Centers (NYSE:REG) from a hold rating to a sell rating in a research note released on Friday.
According to Zacks, “Shares of Regency have underperformed the industry it belongs to in the past three months. Recently, the company reported fourth-quarter 2017 core funds from operations (FFO) per share of 92 cents, which came in line with the Zacks Consensus Estimate. The company is making strategic acquisitions to fortify its portfolio in thriving submarkets. It is also focusing on building a premium portfolio of grocery-anchored shopping centers, which are usually necessity driven. Further, the presence of leading grocers in its tenant roster augurs well for long-term growth. However, the recent efforts of online retailers to go deeper into the grocery business have emerged as a concern. In fact, move outs, store closures and bankruptcies of retailers are likely to affects performance in the near term. Also, rate hike and stiff completion add to woes.”
A number of other equities analysts also recently commented on REG. Jefferies Group set a $69.00 target price on shares of Regency Centers and gave the company a hold rating in a research note on Friday, December 15th. Boenning Scattergood reissued a hold rating on shares of Regency Centers in a research note on Tuesday, January 16th. SunTrust Banks reissued a buy rating and issued a $74.00 target price on shares of Regency Centers in a research note on Friday, December 1st. BMO Capital Markets set a $68.00 target price on shares of Regency Centers and gave the company a hold rating in a research note on Thursday, January 11th. Finally, Robert W. Baird reissued a buy rating on shares of Regency Centers in a research note on Friday, November 3rd. One research analyst has rated the stock with a sell rating, six have given a hold rating, five have given a buy rating and one has assigned a strong buy rating to the company’s stock. Regency Centers currently has a consensus rating of Hold and a consensus price target of $71.29.
Regency Centers (NYSE:REG) last posted its quarterly earnings results on Thursday, February 8th. The real estate investment trust reported $0.50 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.92 by ($0.42). The company had revenue of $257.95 million for the quarter, compared to analysts’ expectations of $257.60 million. Regency Centers had a return on equity of 2.71% and a net margin of 18.16%. During the same period in the prior year, the business earned $0.86 EPS. equities analysts expect that Regency Centers will post 3.8 EPS for the current year.
The company also recently declared a quarterly dividend, which will be paid on Friday, March 2nd. Investors of record on Tuesday, February 20th will be issued a dividend of $0.555 per share. This represents a $2.22 dividend on an annualized basis and a yield of 3.82%. This is a positive change from Regency Centers’s previous quarterly dividend of $0.38. The ex-dividend date of this dividend is Friday, February 16th. Regency Centers’s dividend payout ratio (DPR) is presently 243.68%.
Regency Centers announced that its board has authorized a share buyback plan on Thursday, February 8th that permits the company to buyback $250.00 million in shares. This buyback authorization permits the real estate investment trust to repurchase shares of its stock through open market purchases. Shares buyback plans are generally an indication that the company’s management believes its shares are undervalued.
In related news, Vice Chairman Chaim Katzman sold 204,602 shares of the firm’s stock in a transaction on Thursday, January 11th. The shares were sold at an average price of $64.90, for a total transaction of $13,278,669.80. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP James D. Thompson sold 14,983 shares of the firm’s stock in a transaction on Tuesday, December 12th. The shares were sold at an average price of $68.45, for a total transaction of $1,025,586.35. Following the sale, the vice president now directly owns 48,976 shares of the company’s stock, valued at $3,352,407.20. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 598,762 shares of company stock valued at $38,701,922. Company insiders own 12.66% of the company’s stock.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Perigon Wealth Management LLC grew its holdings in Regency Centers by 93.2% during the 2nd quarter. Perigon Wealth Management LLC now owns 2,125 shares of the real estate investment trust’s stock worth $133,000 after acquiring an additional 1,025 shares in the last quarter. Advisor Group Inc. grew its holdings in Regency Centers by 15.6% during the 2nd quarter. Advisor Group Inc. now owns 2,999 shares of the real estate investment trust’s stock worth $188,000 after acquiring an additional 404 shares in the last quarter. ZWJ Investment Counsel Inc. acquired a new position in Regency Centers during the 4th quarter worth $201,000. Wetherby Asset Management Inc. acquired a new position in Regency Centers during the 4th quarter worth $213,000. Finally, WINTON GROUP Ltd acquired a new position in Regency Centers during the 3rd quarter worth $219,000. 91.74% of the stock is owned by institutional investors and hedge funds.
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Regency Centers Company Profile
Regency Centers Corporation is a real estate investment trust (REIT). The Company is the general partner of Regency Centers, L.P. (the Operating Partnership). The Company is engaged in the ownership, management, leasing, acquisition and development of retail shopping centers through the Operating Partnership.
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