Outfront Media Inc. (REIT) (OUT) Volatility Spurs A Quest For Clarity


Eminence Capital LP recently announced the acquisition of new stake in Outfront Media Inc. (REIT) (NYSE:OUT). The institutional investor has increased its shareholding in the Real Estate company by 74.21% to 6.33 million shares with purchase of 2.7 million shares. This fresh investment now brings its stake to 4.38% valued currently at $91.18 million. In addition, Macquarie Investment Management B.. raised its holdings by 0.31 million to 5.61 million shares. And Senvest Management LLC has lifted its position by 383.79% or 3.06 million shares – to 3.85 million shares.

With over 1.14 million Outfront Media Inc. (REIT) (OUT) shares trading Friday and a closing price of $17.25 on the day, the dollar volume was approximately $19.64 million. The shares have shown a positive weekly performance of 13.79% and its price on 08/28/20 gained nearly 0.52%. Currently, there are 144.40M common shares owned by the public and among those 143.44M 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: 6 analysts who have offered their price forecasts for OUT have a consensus price objective of $18.17. The analysts have set the share’s price value over the next 12 months at a high of $20.00 and a low of $17.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Outfront Media Inc. (REIT) stock is 1.80 for the next 12 months. The average price target is 2.82% above its last price level and an upside to the estimated low will see the stock lose -1.47% over that period. But an upside of 13.75% will see the stock hit the forecast high price target while mean target price for the stock is $18.00.

Insiders at the company have transacted a total of 87 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 60 of these insider trades were purchases, accounting for 428,767 shares. Insider sales of the common stock occurred on 27 occasions, with total insider shares sold totaling 264,337 shares.

The top 3 mutual fund holders in Outfront Media Inc. (REIT) are Fidelity Japan Fidelity US REIT M, Vanguard Real Estate Index Fund, and Vanguard Total Stock Market Index. Fidelity Japan Fidelity US REIT M owns 8.58 million shares of the company’s stock, all valued at over $123.59 million. The company bought an additional 4.81 million shares recently to bring their total holdings to about 5.94% of the shares outstanding. Vanguard Real Estate Index Fund sold 26729.0 shares to see its total holdings shrink to 6.43 million shares valued at over $92.6 million and representing 4.45% of the shares outstanding. Vanguard Total Stock Market Index sold 2525.0 shares to bring its total holdings to over 4.11 million shares at a value of $59.17 million. Vanguard Total Stock Market Index now owns shares totaling to 2.85% of the shares outstanding.

Shares of Outfront Media Inc. (REIT) (NYSE: OUT) opened at $17.20, up $0.04 from a prior closing price of $17.16. However, the script later closed the day at $17.25, up 0.52%. The company’s stock has a 5-day price change of 13.79% and 18.64% over the past three months. OUT shares are trading -35.68% year to date (YTD), with the 12-month market performance down to -37.84% lower. It has a 12-month low price of $7.07 and touched a high of $31.20 over the same period. Currently, 1.14 million shares have been traded, compared to an average intraday trading volume of 2.05 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 11.71%, 16.08%, and -11.85% respectively.

Institutional ownership of Outfront Media Inc. (REIT) (NYSE: OUT) shares accounts for 97.10% of the company’s 144.40M shares outstanding. Mutual fund holders own 43.37%, while other institutional holders and individual stakeholders account for 52.97% and 0.94% respectively.

It has a market capitalization of $2.48B and a beta (3y monthly) value of 1.56. The stock’s trailing 12-month PE ratio is 99.14, while the earnings-per-share (ttm) stands at $0.17. The company has a PEG of 9.91 and a Quick Ratio of 1.70 with the debt-to-equity ratio at 2.76. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.35% over the week and 4.79% over the month.

Analysts forecast that Outfront Media Inc. (REIT) (OUT) will achieve an EPS of -$0.18 for the current quarter, $0.06 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 $0.27 a year ago. Earnings per share for the fiscal year are expected to increase by 24.90%, and 217.00% over the next financial year. EPS should grow at an annualized rate of 10.00% over the next five years, compared to -18.40% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 6 brokerage firm advisors rate Outfront Media Inc. (REIT) (OUT) as a “Strong Buy” at a consensus score of 1.80. Specifically, 4 Wall Street analysts polled rate the stock as a buy, while 2 of the 6 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the OUT, a number of firms have released research notes about the stock. Morgan Stanley stated their Equal-Weight rating for the stock in a research note on April 20, 2020, with the firm’s price target at $13. Imperial Capital coverage for the Outfront Media Inc. (REIT) (OUT) stock in a research note released on March 20, 2020 offered a Outperform rating with a price target of $24. Imperial Capital was of a view on February 19, 2020 that the stock is Outperform, while JP Morgan gave the stock Overweight rating on February 03, 2020, issuing a price target of $28- $38. Morgan Stanley on their part issued Overweight rating on January 22, 2020.


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