Reassessing The Changing Outlook For Seritage Growth Properties (SRG)


    Dalal Street LLC recently announced the acquisition of new stake in Seritage Growth Properties (NYSE:SRG). This fresh investment now brings its stake to 12.52% valued currently at $55.12 million. In addition, Hotchkis & Wiley Capital Manageme. raised its holdings by 0.3 million to 4.34 million shares. And SSgA Funds Management, Inc. has lifted its position by 13.20% or 0.18 million shares – to 1.58 million shares.

    With over 0.56 million Seritage Growth Properties (SRG) shares trading Tuesday and a closing price of $9.90 on the day, the dollar volume was approximately $5.5 million. The shares have shown a positive weekly performance of 1.22% and its price on 07/21/20 lost nearly -0.70%. Currently, there are 37.23M common shares owned by the public and among those 29.48M 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: 1 analysts who have offered their price forecasts for SRG have a consensus price objective of $16.00. The analysts have set the share’s price value over the next 12 months at a high of $16.00 and a low of $16.00 should the stock experience a downside. The average price target is 38.13% above its last price level and an upside to the estimated low will see the stock gain 38.13% over that period. But an upside of 38.13% will see the stock hit the forecast high price target while mean target price for the stock is $16.00.

    Insiders at the company have transacted a total of 21 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 19 of these insider trades were purchases, accounting for 1,408,569 shares. Insider sales of the common stock occurred on 2 occasions, with total insider shares sold totaling 1,641 shares.

    The top 3 mutual fund holders in Seritage Growth Properties are EdgePoint Global Portfolio, Hotchkis & Wiley Small Cap Value, and Vanguard Real Estate Index Fund. EdgePoint Global Portfolio owns 2.79 million shares of the company’s stock, all valued at over $31.75 million. Hotchkis & Wiley Small Cap Value bought 0.36 million shares to see its total holdings expand to 1.2 million shares valued at over $13.66 million and representing 3.10% of the shares outstanding. Vanguard Real Estate Index Fund bought 5402.0 shares to bring its total holdings to over 1.17 million shares at a value of $13.33 million. Vanguard Real Estate Index Fund now owns shares totaling to 3.03% of the shares outstanding.

    Shares of Seritage Growth Properties (NYSE: SRG) opened at $9.88, down -$0.09 from a prior closing price of $9.97. However, the script later closed the day at $9.90, down -0.70%. The company’s stock has a 5-day price change of 1.22% and 9.80% over the past three months. SRG shares are trading -75.12% year to date (YTD), with the 12-month market performance down to -74.95% lower. It has a 12-month low price of $5.00 and touched a high of $45.70 over the same period. Currently, 0.56 million shares have been traded, compared to an average intraday trading volume of 1.62 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 -7.39%, -7.37%, and -62.62% respectively.

    Institutional ownership of Seritage Growth Properties (NYSE: SRG) shares accounts for 97.30% of the company’s 37.23M shares outstanding. Mutual fund holders own 47.57%, while other institutional holders and individual stakeholders account for 60.64% and 25.87% respectively.

    It has a market capitalization of $386.64M and a beta (3y monthly) value of 1.96. The earnings-per-share (ttm) stands at -$2.12. The company has a debt-to-equity ratio at 2.17. Price movements for the stock have been influenced by the stock’s volatility, which stands at 6.82% over the week and 8.73% over the month.

    Analysts forecast that Seritage Growth Properties (SRG) will achieve an EPS of $0 for the current quarter, $0 for the next quarter and $0 for Next Year. The lowest estimate earnings-per-share for the quarter is $0 while analysts give the company a high EPS estimate of $0.

    Specifically, 0 Wall Street analysts polled rate the stock as a buy, while 1 of the 1 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the SRG, a number of firms have released research notes about the stock. RBC Capital Mkts stated their Sector Perform rating for the stock in a research note on April 15, 2020, with the firm’s price target at $45-$16.


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