Zacks Investment Research lowered shares of DDR (NYSE:DDR) from a hold rating to a sell rating in a report issued on Monday morning.
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.”
A number of other research firms have also recently issued reports on DDR. Citigroup restated a buy rating on shares of DDR in a research note on Friday, December 15th. Boenning Scattergood restated a sell rating on shares of DDR in a research note on Monday, November 6th. ValuEngine upgraded shares of DDR from a hold rating to a buy rating in a research note on Monday, October 2nd. SunTrust Banks restated a hold rating and set a $10.00 target price on shares of DDR in a research note on Friday, November 3rd. Finally, Mizuho restated a hold rating and set a $10.00 target price on shares of DDR in a research note on Monday, October 9th. Two analysts have rated the stock with a sell rating, twelve have assigned a hold rating and six have issued a buy rating to the company’s stock. The company currently has an average rating of Hold and an average target price of $11.29.
DDR (NYSE:DDR) last announced its quarterly earnings results on Thursday, November 2nd. The real estate investment trust reported $0.30 EPS for the quarter, beating analysts’ consensus estimates of $0.27 by $0.03. The firm had revenue of $220.10 million during the quarter, compared to analysts’ expectations of $218.58 million. DDR had a net margin of 1.11% and a return on equity of 3.48%. The company’s revenue for the quarter was down 10.2% compared to the same quarter last year. During the same quarter last year, the company posted $0.33 earnings per share. equities research analysts expect that DDR will post 1.15 EPS for the current year.
The firm also recently declared a quarterly dividend, which was paid on Friday, January 5th. Investors of record on Tuesday, December 12th were given a dividend of $0.19 per share. This represents a $0.76 dividend on an annualized basis and a yield of 9.08%. The ex-dividend date of this dividend was Monday, December 11th. DDR’s dividend payout ratio is -1,900.00%.
A number of large investors have recently added to or reduced their stakes in the stock. SG Americas Securities LLC increased its position in DDR by 2.0% during the second quarter. SG Americas Securities LLC now owns 17,249 shares of the real estate investment trust’s stock worth $156,000 after acquiring an additional 339 shares during the period. Franklin Resources Inc. increased its position in DDR by 1.2% during the second quarter. Franklin Resources Inc. now owns 237,633 shares of the real estate investment trust’s stock worth $2,156,000 after acquiring an additional 2,833 shares during the period. Profund Advisors LLC increased its position in DDR by 25.9% during the second 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 period. The Manufacturers Life Insurance Company increased its position in DDR by 24.9% during the second quarter. The Manufacturers Life Insurance Company now owns 23,930 shares of the real estate investment trust’s stock worth $217,000 after acquiring an additional 4,768 shares during the period. Finally, Alliancebernstein L.P. increased its position in DDR by 1.5% during the second quarter. Alliancebernstein L.P. now owns 421,923 shares of the real estate investment trust’s stock worth $3,827,000 after acquiring an additional 6,058 shares during the period. 80.02% of the stock is currently 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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