Mack Cali Realty (CLI) Downgraded by Zacks Investment Research to “Sell”

Zacks Investment Research downgraded shares of Mack Cali Realty (NYSE:CLI) from a hold rating to a sell rating in a research note released on Tuesday morning.

According to Zacks, “Mark-Cali’s shares have underperformed the industry over the past year. Moreover, the trend in estimate revisions for 2018 funds from operations (FFO) per share does not indicate a favorable outlook for the company.  While Mack-Cali has been aimed at transforming itself by focusing on waterfront and transit-based office holdings and luxury multifamily portfolio, such plans involve significant upfront costs and could restrain its profit margin. Further, it has been aggressively disposing assets. While such measures are a strategic fit for the long term, the dilutive impact on earnings from huge asset sales cannot be bypassed in the near term. Rate hikes also add to its woes. Nonetheless, it enjoys debt-free ownership for the bulk of its portfolio.”

Other research analysts have also issued research reports about the stock. Deutsche Bank lifted their price target on shares of Mack Cali Realty from $20.00 to $21.00 and gave the company a hold rating in a research note on Tuesday, June 26th. Stifel Nicolaus cut their price target on shares of Mack Cali Realty from $23.00 to $21.00 and set a hold rating on the stock in a research note on Tuesday, September 25th. ValuEngine raised shares of Mack Cali Realty from a sell rating to a hold rating in a research note on Wednesday, August 15th. Citigroup lifted their price target on shares of Mack Cali Realty from $18.00 to $20.00 and gave the company a neutral rating in a research note on Thursday, June 28th. Finally, JPMorgan Chase & Co. lowered shares of Mack Cali Realty from an overweight rating to a neutral rating in a research note on Friday, October 5th. Three research analysts have rated the stock with a sell rating, four have issued a hold rating and one has issued a buy rating to the company. Mack Cali Realty has a consensus rating of Hold and a consensus price target of $21.80.

Shares of CLI opened at $20.13 on Tuesday. The company has a debt-to-equity ratio of 1.58, a quick ratio of 0.83 and a current ratio of 0.83. Mack Cali Realty has a twelve month low of $15.86 and a twelve month high of $23.72. The company has a market capitalization of $1.92 billion, a price-to-earnings ratio of 9.03 and a beta of 1.19.

Mack Cali Realty (NYSE:CLI) last announced its quarterly earnings results on Wednesday, August 1st. The real estate investment trust reported ($0.05) earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.44 by ($0.49). Mack Cali Realty had a net margin of 13.89% and a return on equity of 4.70%. The company had revenue of $126.58 million during the quarter, compared to the consensus estimate of $133.28 million. During the same period in the previous year, the firm posted $0.60 EPS. The business’s quarterly revenue was down 90.0% compared to the same quarter last year. Analysts anticipate that Mack Cali Realty will post 1.86 earnings per share for the current year.

The firm also recently disclosed a quarterly dividend, which was paid on Friday, October 12th. Stockholders of record on Tuesday, October 2nd were given a $0.20 dividend. This represents a $0.80 dividend on an annualized basis and a dividend yield of 3.97%. The ex-dividend date was Monday, October 1st. Mack Cali Realty’s dividend payout ratio is presently 35.87%.

In other news, EVP Robert Andrew Marshall sold 1,426 shares of the business’s stock in a transaction on Monday, September 10th. The shares were sold at an average price of $21.28, for a total value of $30,345.28. Following the sale, the executive vice president now owns 1,426 shares of the company’s stock, valued at $30,345.28. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Insiders own 6.83% of the company’s stock.

Several hedge funds have recently made changes to their positions in CLI. First Hawaiian Bank bought a new stake in shares of Mack Cali Realty in the third quarter worth $123,000. State of Alaska Department of Revenue increased its holdings in Mack Cali Realty by 89.9% during the second quarter. State of Alaska Department of Revenue now owns 7,424 shares of the real estate investment trust’s stock worth $150,000 after buying an additional 3,514 shares during the last quarter. Point72 Hong Kong Ltd increased its holdings in Mack Cali Realty by 729.3% during the second quarter. Point72 Hong Kong Ltd now owns 8,973 shares of the real estate investment trust’s stock worth $182,000 after buying an additional 7,891 shares during the last quarter. Koch Industries Inc. acquired a new position in Mack Cali Realty during the first quarter worth $272,000. Finally, Verition Fund Management LLC acquired a new position in Mack Cali Realty during the second quarter worth $284,000. 98.95% of the stock is currently owned by institutional investors and hedge funds.

About Mack Cali Realty

Mack-Cali Realty Corporation is fully-integrated and self-managed company, Mack-Cali has provided world-class management, leasing, and development services throughout New Jersey and the surrounding region for two decades. By regularly investing in its properties and innovative lifestyle amenity packages, Mack-Cali creates environments that empower tenants and residents to reimagine the way they work and live.

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