Retail Properties of America Inc. (NYSE: RPAI): Stock That Needs Special Handling


    BlackRock Fund Advisors recently announced the acquisition of new stake in Retail Properties of America Inc. (NYSE:RPAI). The institutional investor has increased its shareholding in the Real Estate company by 184.67% to 33.4 million shares with purchase of 21.67 million shares. This fresh investment now brings its stake to 15.60% valued currently at $212.45 million. In addition, The Vanguard Group, Inc. raised its holdings by 1.11 million to 32.12 million shares. And CenterSquare Investment Managemen.. has lifted its position by 47.06% or 4.56 million shares – to 14.26 million shares.

    With over 1.53 million Retail Properties of America Inc. (RPAI) shares trading Monday and a closing price of $6.31 on the day, the dollar volume was approximately $9.64 million. The shares have shown a negative weekly performance of -4.25% and its price on 08/31/20 lost nearly -3.52%. Currently, there are 213.34M common shares owned by the public and among those 212.47M 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: 7 analysts who have offered their price forecasts for RPAI have a consensus price objective of $7.21. The analysts have set the share’s price value over the next 12 months at a high of $9.00 and a low of $6.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Retail Properties of America Inc. stock is 2.90 for the next 12 months. The average price target is 18.16% above its last price level and an upside to the estimated low will see the stock lose -5.17% over that period. But an upside of 29.89% will see the stock hit the forecast high price target while mean target price for the stock is $7.00.

    Insiders at the company have transacted a total of 43 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 23 of these insider trades were purchases, accounting for 556,473 shares. Insider sales of the common stock occurred on 20 occasions, with total insider shares sold totaling 137,485 shares.

    The top 3 mutual fund holders in Retail Properties of America Inc. are iShares Core S&P Small Cap ETF, Cohen & Steers Real Estate Securi, and Vanguard Real Estate Index Fund. iShares Core S&P Small Cap ETF owns 13.36 million shares of the company’s stock, all valued at over $85.0 million. The company bought an additional 84031.0 shares recently to bring their total holdings to about 6.24% of the shares outstanding. Cohen & Steers Real Estate Securi bought 1.26 million shares to see its total holdings expand to 10.96 million shares valued at over $69.72 million and representing 5.12% of the shares outstanding. Vanguard Real Estate Index Fund sold 39401.0 shares to bring its total holdings to over 9.54 million shares at a value of $60.66 million. Vanguard Real Estate Index Fund now owns shares totaling to 4.45% of the shares outstanding.

    Shares of Retail Properties of America Inc. (NYSE: RPAI) opened at $6.53, down -$0.01 from a prior closing price of $6.54. However, the script later closed the day at $6.31, down -3.52%. The company’s stock has a 5-day price change of -4.25% and 1.45% over the past three months. RPAI shares are trading -52.91% year to date (YTD), with the 12-month market performance down to -44.45% lower. It has a 12-month low price of $2.87 and touched a high of $14.30 over the same period. Currently, 1.53 million shares have been traded, compared to an average intraday trading volume of 3.53 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 -4.15%, -4.51%, and -27.60% respectively.

    Institutional ownership of Retail Properties of America Inc. (NYSE: RPAI) shares accounts for 99.90% of the company’s 213.34M shares outstanding. Mutual fund holders own 47.25%, while other institutional holders and individual stakeholders account for 52.58% and 1.04% respectively.

    It has a market capitalization of $1.36B and a beta (3y monthly) value of 1.29. The stock’s trailing 12-month PE ratio is 525.83, while the earnings-per-share (ttm) stands at $0.01. The company has a debt-to-equity ratio at 1.10. Price movements for the stock have been influenced by the stock’s volatility, which stands at 4.67% over the week and 5.25% over the month.

    Analysts forecast that Retail Properties of America Inc. (RPAI) will achieve an EPS of $0.02 for the current quarter, $0.03 for the next quarter and $0.16 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.01 while analysts give the company a high EPS estimate of $0.05. Comparatively, EPS for the current quarter was -$0.13 a year ago. Earnings per share for the fiscal year are expected to decrease by -57.60%, and 14.69% over the next financial year. EPS should shrink at an annualized rate of -4.49% over the next five years, compared to 1.40% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 7 brokerage firm advisors rate Retail Properties of America Inc. (RPAI) as a “Moderate Buy” at a consensus score of 2.90. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 3 of the 7 advise that investors “hold,” and 2 rated it as a “Sell.”

    Looking at the support for the RPAI, a number of firms have released research notes about the stock. Deutsche Bank stated their Hold rating for the stock in a research note on July 27, 2020, with the firm’s price target at $7. JP Morgan coverage for the Retail Properties of America Inc. (RPAI) stock in a research note released on April 22, 2020 offered a Underweight rating with a price target of $6. Citigroup was of a view on April 07, 2020 that the stock is Neutral, while Compass Point gave the stock Sell rating on March 03, 2020, issuing a price target of $10. Compass Point on their part issued Neutral rating on August 15, 2019.


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