Why Should You Put Drive Shack Inc. (NYSE: DS) On Your Portfolio?


    T. Rowe Price Associates, Inc. (I. recently announced the acquisition of new stake in Drive Shack Inc. (NYSE:DS). The institutional investor has increased its shareholding in the Consumer Cyclical company by 48.34% to 5.74 million shares with purchase of 1.87 million shares. This fresh investment now brings its stake to 8.56% valued currently at $10.62 million. In addition, American Assets Capital Advisers. raised its holdings by 0.85 million to 4.79 million shares. And The Vanguard Group, Inc. has lifted its position by 1.64% or 49224.0 shares – to 3.06 million shares.

    With over 1.22 million Drive Shack Inc. (DS) shares trading Friday and a closing price of $1.66 on the day, the dollar volume was approximately $2.03 million. The shares have shown a negative weekly performance of -7.30% and its price on 07/24/20 gained nearly 0.61%. Currently, there are 67.07M common shares owned by the public and among those 58.11M 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: 2 analysts who have offered their price forecasts for DS have a consensus price objective of $3.50. The analysts have set the share’s price value over the next 12 months at a high of $4.00 and a low of $3.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Drive Shack Inc. stock is 1.70 for the next 12 months. But an upside of 58.5% will see the stock hit the forecast high price target while mean target price for the stock is $3.50.

    Insiders at the company have transacted a total of 15 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 14 of these insider trades were purchases, accounting for 1,614,787 shares. Insider sales of the common stock occurred on 1 occasions, with total insider shares sold totaling 2,394 shares.

    The top 3 mutual fund holders in Drive Shack Inc. are Altegris/AACA Opportunistic Real, T Rowe Price Small Cap Stock Fund, and Vanguard Total Stock Market Index. Altegris/AACA Opportunistic Real owns 3.34 million shares of the company’s stock, all valued at over $6.19 million. T Rowe Price Small Cap Stock Fund sold 10700.0 shares to see its total holdings shrink to 2.76 million shares valued at over $5.1 million and representing 4.11% of the shares outstanding. Vanguard Total Stock Market Index sold 26791.0 shares to bring its total holdings to over 1.83 million shares at a value of $3.39 million. Vanguard Total Stock Market Index now owns shares totaling to 2.73% of the shares outstanding.

    Shares of Drive Shack Inc. (NYSE: DS) opened at $1.66, up $0.01 from a prior closing price of $1.65. However, the script later closed the day at $1.66, up 0.61%. The company’s stock has a 5-day price change of -7.30% and 54.21% over the past three months. DS shares are trading -54.92% year to date (YTD), with the 12-month market performance down to -67.33% lower. It has a 12-month low price of $0.86 and touched a high of $5.31 over the same period. Currently, 1.22 million shares have been traded, compared to an average intraday trading volume of 2.40 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 -5.20%, -13.79%, and -39.24% respectively.

    Institutional ownership of Drive Shack Inc. (NYSE: DS) shares accounts for 61.20% of the company’s 67.07M shares outstanding. Mutual fund holders own 24.61%, while other institutional holders and individual stakeholders account for 26.70% and 12.57% respectively.

    It has a market capitalization of $111.29M and a beta (3y monthly) value of 1.61. The earnings-per-share (ttm) stands at -$0.94. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.49% over the week and 9.36% over the month.

    Analysts forecast that Drive Shack Inc. (DS) will achieve an EPS of -$0.16 for the current quarter, -$0.19 for the next quarter and -$0.55 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.23 while analysts give the company a high EPS estimate of -$0.11. Comparatively, EPS for the current quarter was -$0.21 a year ago. Earnings per share for the fiscal year are expected to decrease by -36.40%, and 28.60% over the next financial year. EPS should grow at an annualized rate of 8.10% over the next five years, compared to -23.80% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 2 brokerage firm advisors rate Drive Shack Inc. (DS) as a “Strong Buy” at a consensus score of 1.70. Specifically, 2 Wall Street analysts polled rate the stock as a buy, while 0 of the 2 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the DS, a number of firms have released research notes about the stock. B. Riley FBR stated their Buy rating for the stock in a research note on June 01, 2020, with the firm’s price target at $4. BTIG Research coverage for the Drive Shack Inc. (DS) stock in a research note released on April 21, 2020 offered a Buy rating with a price target of $3. JMP Securities was of a view on October 15, 2019 that the stock is Mkt Outperform, while Imperial Capital gave the stock Outperform rating on March 18, 2019, issuing a price target of $5- $7.


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