Reassessing The Changing Outlook For Highwoods Properties Inc. (NYSE: HIW)


    Victory Capital Management, Inc. recently announced the acquisition of new stake in Highwoods Properties Inc. (NYSE:HIW). The institutional investor has increased its shareholding in the Real Estate company by 5.91% to 6.16 million shares with purchase of 0.34 million shares. This fresh investment now brings its stake to 5.93% valued currently at $235.58 million. In addition, SSgA Funds Management, Inc. raised its holdings by 57522.0 to 5.07 million shares. And Cohen & Steers Capital Management. has lifted its position by 14,765.16% or 2.85 million shares – to 2.87 million shares.

    With over 0.39 million Highwoods Properties Inc. (HIW) shares trading Tuesday and a closing price of $36.28 on the day, the dollar volume was approximately $14.12 million. The shares have shown a negative weekly performance of -2.42% and its price on 07/07/20 lost nearly -3.87%. Currently, there are 103.81M common shares owned by the public and among those 102.61M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 13 analysts who have offered their price forecasts for HIW have a consensus price objective of $44.75. The analysts have set the share’s price value over the next 12 months at a high of $50.00 and a low of $37.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Highwoods Properties Inc. stock is 2.10 for the next 12 months. The average price target is 18.93% above its last price level and an upside to the estimated low will see the stock gain 1.95% over that period. But an upside of 27.44% will see the stock hit the forecast high price target while mean target price for the stock is $45.00.

    Insiders at the company have transacted a total of 24 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 16 of these insider trades were purchases, accounting for 139,476 shares. Insider sales of the common stock occurred on 8 occasions, with total insider shares sold totaling 24,701 shares.

    The top 3 mutual fund holders in Highwoods Properties Inc. are Vanguard Real Estate Index Fund, Victory Sycamore Established Valu, and Vanguard Total Stock Market Index. Vanguard Real Estate Index Fund owns 4.62 million shares of the company’s stock, all valued at over $176.65 million. The company sold -0.12 million shares recently to bring their total holdings to about 4.44% of the shares outstanding. Victory Sycamore Established Valu has total holdings of 4.19 million shares valued at over $160.26 million and representing 4.03% of the shares outstanding. Vanguard Total Stock Market Index sold 15040.0 shares to bring its total holdings to over 2.99 million shares at a value of $114.37 million. Vanguard Total Stock Market Index now owns shares totaling to 2.88% of the shares outstanding.

    Shares of Highwoods Properties Inc. (NYSE: HIW) opened at $37.12, down -$0.62 from a prior closing price of $37.74. However, the script later closed the day at $36.28, down -3.87%. The company’s stock has a 5-day price change of -2.42% and 7.12% over the past three months. HIW shares are trading -25.82% year to date (YTD), with the 12-month market performance down to -16.39% lower. It has a 12-month low price of $25.10 and touched a high of $52.76 over the same period. Currently, 0.39 million shares have been traded, compared to an average intraday trading volume of 1.04 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -7.27%, -3.64%, and -15.73% respectively.

    Institutional ownership of Highwoods Properties Inc. (NYSE: HIW) shares accounts for 99.10% of the company’s 103.81M shares outstanding. Mutual fund holders own 31.03%, while other institutional holders and individual stakeholders account for 66.62% and 3.28% respectively.

    It has a market capitalization of $3.72B and a beta (3y monthly) value of 0.99. The stock’s trailing 12-month PE ratio is 12.37, while the earnings-per-share (ttm) stands at $2.93. The company has a PEG of 1.55 and a debt-to-equity ratio of 1.05. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.15% over the week and 3.98% over the month.

    Analysts forecast that Highwoods Properties Inc. (HIW) will achieve an EPS of $0.31 for the current quarter, $0.29 for the next quarter and $1.13 for 2021. The lowest estimate earnings-per-share for the quarter is $0.26 while analysts give the company a high EPS estimate of $0.35. Comparatively, EPS for the current quarter was $0.38 a year ago. Earnings per share for the fiscal year are expected to decrease by -20.70%, and -42.55% over the next financial year. EPS should grow at an annualized rate of 8.00% over the next five years, compared to 5.60% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 13 brokerage firm advisors rate Highwoods Properties Inc. (HIW) as a “Moderate Buy” at a consensus score of 2.10. Specifically, 7 Wall Street analysts polled rate the stock as a buy, while 4 of the 13 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the HIW, a number of firms have released research notes about the stock. Morgan Stanley stated their Overweight rating for the stock in a research note on June 25, 2020, with the firm’s price target at $40-$44. Mizuho coverage for the Highwoods Properties Inc. (HIW) stock in a research note released on April 28, 2020 offered a Buy rating with a price target of $45. Robert W. Baird was of a view on April 06, 2020 that the stock is Outperform, while BofA/Merrill gave the stock Buy rating on March 04, 2020, issuing a price target of $54- $55. Janney on their part issued Neutral rating on January 07, 2020.


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