CubeSmart (CUBE) Volatility Spurs A Quest For Clarity


    BlackRock Fund Advisors recently announced the acquisition of new stake in CubeSmart (NYSE:CUBE). The institutional investor has increased its shareholding in the Real Estate company by 0.64% to 11.07 million shares with purchase of 70178.0 shares. This fresh investment now brings its stake to 5.72% valued currently at $298.88 million. In addition, AllianceBernstein LP raised its holdings by 1.93 million to 9.63 million shares. And Principal Global Investors LLC has lifted its position by 6.35% or 0.48 million shares – to 8.0 million shares.

    With over 0.96 million CubeSmart (CUBE) shares trading Wednesday and a closing price of $29.17 on the day, the dollar volume was approximately $27.89 million. The shares have shown a positive weekly performance of 2.67% and its price on 07/28/20 gained nearly 2.66%. Currently, there are 193.58M common shares owned by the public and among those 192.46M 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: 12 analysts who have offered their price forecasts for CUBE have a consensus price objective of $28.55. The analysts have set the share’s price value over the next 12 months at a high of $34.00 and a low of $25.00 should the stock experience a downside. Incidentally, analysts’ outlook for the CubeSmart stock is 3.20 for the next 12 months. The average price target is -3.44% below its last price level and a downside to the estimated low will see the stock lose -16.68% over that period. But an upside of 14.21% will see the stock hit the forecast high price target while mean target price for the stock is $29.00.

    Insiders at the company have transacted a total of 30 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 20 of these insider trades were purchases, accounting for 365,308 shares. Insider sales of the common stock occurred on 10 occasions, with total insider shares sold totaling 136,250 shares.

    The top 3 mutual fund holders in CubeSmart are Vanguard Real Estate Index Fund, Vanguard Total Stock Market Index, and Cohen & Steers Real Estate Securi. Vanguard Real Estate Index Fund owns 8.68 million shares of the company’s stock, all valued at over $234.36 million. The company bought an additional 69608.0 shares recently to bring their total holdings to about 4.49% of the shares outstanding. Vanguard Total Stock Market Index sold 67596.0 shares to see its total holdings shrink to 5.52 million shares valued at over $149.07 million and representing 2.85% of the shares outstanding. Cohen & Steers Real Estate Securi bought 2.64 million shares to bring its total holdings to over 5.44 million shares at a value of $146.93 million. Cohen & Steers Real Estate Securi now owns shares totaling to 2.81% of the shares outstanding.

    Shares of CubeSmart (NYSE: CUBE) opened at $27.73, down -$0.69 from a prior closing price of $28.42. However, the script later closed the day at $29.21, up 2.78%. The company’s stock has a 5-day price change of 2.67% and 8.89% over the past three months. CUBE shares are trading -9.72% year to date (YTD), with the 12-month market performance down to -15.64% lower. It has a 12-month low price of $19.61 and touched a high of $36.32 over the same period. Currently, 0.99 million shares have been traded, compared to an average intraday trading volume of 1.35 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 4.92%, 5.83%, and 0.18% respectively.

    Institutional ownership of CubeSmart (NYSE: CUBE) shares accounts for 99.30% of the company’s 193.58M shares outstanding. Mutual fund holders own 40.24%, while other institutional holders and individual stakeholders account for 61.65% and 4.59% respectively.

    It has a market capitalization of $5.57B and a beta (3y monthly) value of 0.29. The stock’s trailing 12-month PE ratio is 31.97, while the earnings-per-share (ttm) stands at $0.89. The company has a PEG of 5.33 and the debt-to-equity ratio at 1.08. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.70% over the week and 2.47% over the month.

    Analysts forecast that CubeSmart (CUBE) will achieve an EPS of $0.19 for the current quarter, $0.19 for the next quarter and $0.77 for 2021. The lowest estimate earnings-per-share for the quarter is $0.17 while analysts give the company a high EPS estimate of $0.21. Comparatively, EPS for the current quarter was $0.26 a year ago. Earnings per share for the fiscal year are expected to decrease by -0.10%, and 1.05% over the next financial year. EPS should shrink at an annualized rate of 6.00% over the next five years, compared to 46.10% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 12 brokerage firm advisors rate CubeSmart (CUBE) as a “Hold” at a consensus score of 3.20. Specifically, 0 Wall Street analysts polled rate the stock as a buy, while 8 of the 12 advise that investors “hold,” and 2 rated it as a “Sell.”

    Looking at the support for the CUBE, a number of firms have released research notes about the stock. Raymond James stated their Outperform rating for the stock in a research note on April 08, 2020, with the firm’s price target at $36-$28. JP Morgan coverage for the CubeSmart (CUBE) stock in a research note released on January 22, 2020 offered a Neutral rating with a price target of $32. BMO Capital Markets was of a view on January 07, 2020 that the stock is Underperform, while BofA/Merrill gave the stock Underperform rating on January 06, 2020, issuing a price target of. Wells Fargo on their part issued Underperform rating on December 10, 2019.


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