Why Should You Put CubeSmart (NYSE: CUBE) On Your Portfolio?


    Principal Global Investors LLC recently announced the acquisition of new stake in CubeSmart (NYSE:CUBE). The institutional investor has increased its shareholding in the Real Estate company by 4.12% to 8.33 million shares with purchase of 0.33 million shares. This fresh investment now brings its stake to 4.30% valued currently at $247.12 million. In addition, Cohen & Steers Capital Management.. raised its holdings by 3.0 million to 5.97 million shares. And CenterSquare Investment Managemen.. has lifted its position by 299.82% or 3.91 million shares – to 5.21 million shares.

    With over 1.08 million CubeSmart (CUBE) shares trading Tuesday and a closing price of $31.40 on the day, the dollar volume was approximately $33.87 million. The shares have shown a positive weekly performance of 0.10% and its price on 08/25/20 gained nearly 0.32%. Currently, there are 193.63M common shares owned by the public and among those 192.63M 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 $29.27. The analysts have set the share’s price value over the next 12 months at a high of $35.00 and a low of $25.00 should the stock experience a downside. Incidentally, analysts’ outlook for the CubeSmart stock is 3.00 for the next 12 months. The average price target is -7.9% below its last price level and a downside to the estimated low will see the stock lose -25.6% over that period. But an upside of 10.29% will see the stock hit the forecast high price target while mean target price for the stock is $30.00.

    Insiders at the company have transacted a total of 31 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 11 occasions, with total insider shares sold totaling 146,250 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 8.64 million shares of the company’s stock, all valued at over $256.47 million. The company sold 39099.0 shares recently to bring their total holdings to about 4.47% of the shares outstanding. Vanguard Total Stock Market Index sold 29296.0 shares to see its total holdings shrink to 5.49 million shares valued at over $163.01 million and representing 2.84% 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 $161.52 million. Cohen & Steers Real Estate Securi now owns shares totaling to 2.81% of the shares outstanding.

    Shares of CubeSmart (NYSE: CUBE) opened at $31.22, down -$0.08 from a prior closing price of $31.30. However, the script later closed the day at $31.40, up 0.32%. The company’s stock has a 5-day price change of 0.10% and 12.87% over the past three months. CUBE shares are trading -0.25% year to date (YTD), with the 12-month market performance down to -11.30% lower. It has a 12-month low price of $19.61 and touched a high of $36.32 over the same period. Currently, 1.08 million shares have been traded, compared to an average intraday trading volume of 1.31 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 4.11%, 9.67%, and 8.73% respectively.

    Institutional ownership of CubeSmart (NYSE: CUBE) 193.63M shares outstanding. Mutual fund holders own 42.05%, while other institutional holders and individual stakeholders account for 61.27% and 4.59% respectively.

    It has a market capitalization of $6.07B and a beta (3y monthly) value of 0.31. The stock’s trailing 12-month PE ratio is 37.88, while the earnings-per-share (ttm) stands at $0.83. The company has a PEG of 6.31 and the debt-to-equity ratio at 1.11. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.57% over the week and 2.71% over the month.

    Analysts forecast that CubeSmart (CUBE) will achieve an EPS of $0.18 for the current quarter, $0.18 for the next quarter and $0.75 for 2021. The lowest estimate earnings-per-share for the quarter is $0.18 while analysts give the company a high EPS estimate of $0.19. Comparatively, EPS for the current quarter was $0.22 a year ago. Earnings per share for the fiscal year are expected to decrease by -0.10%, and 1.44% 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 3.00. Specifically, 1 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. BofA Securities stated their Neutral rating for the stock in a research note on August 12, 2020, with the firm’s price target at $29-$32. Evercore ISI coverage for the CubeSmart (CUBE) stock in a research note released on August 10, 2020 offered a Outperform rating with a price target of $35. Raymond James was of a view on April 08, 2020 that the stock is Outperform, while JP Morgan gave the stock Neutral rating on January 22, 2020, issuing a price target of $32. BMO Capital Markets on their part issued Underperform rating on January 07, 2020.


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