Extra Space Storage (EXR) Downgraded by Zacks Investment Research to “Sell”
According to Zacks, “Shares of Extra Space Storage have outperformed its industry, in three months’ time. The company enjoys presence in key cities and opts for strategic joint ventures to drive long-term profitability. Focus on expansion of its geographical footprint through accretive acquisitions and third-party management platforms also bode well. However, Extra Space Storage operates in a highly fragmented market in the United States, with intense competition from numerous private, regional and local operators. In addition, there is a development boom of self-storage units in many markets. This high supply is likely to fuel competition for the company, curb its power to raise rents and turn on more discounting. Moreover, the trend in estimate revisions for 2019 funds from operations (FFO) per share does not indicate a favorable outlook for the company.”
EXR has been the topic of a number of other research reports. ValuEngine raised shares of Extra Space Storage from a “hold” rating to a “buy” rating in a research note on Wednesday, March 6th. Evercore ISI cut shares of Extra Space Storage from an “in-line” rating to an “underperform” rating in a research note on Monday, April 1st. They noted that the move was a valuation call. Finally, Raymond James cut shares of Extra Space Storage from an “outperform” rating to a “market perform” rating and set a $99.27 price objective on the stock. in a research note on Thursday, March 21st. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and four have assigned a buy rating to the company. The company currently has an average rating of “Hold” and an average price target of $97.83.
Extra Space Storage (NYSE:EXR) last released its earnings results on Wednesday, February 20th. The real estate investment trust reported $1.22 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.20 by $0.02. The firm had revenue of $266.60 million during the quarter, compared to analyst estimates of $265.39 million. Extra Space Storage had a net margin of 37.36% and a return on equity of 16.40%. The business’s revenue was up 8.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.17 EPS. Equities analysts forecast that Extra Space Storage will post 4.81 earnings per share for the current fiscal year.
In other news, CEO Joseph D. Margolis sold 2,500 shares of the stock in a transaction that occurred on Monday, April 1st. The shares were sold at an average price of $100.05, for a total transaction of $250,125.00. Following the sale, the chief executive officer now directly owns 113,732 shares of the company’s stock, valued at $11,378,886.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CMO James Overturf sold 440 shares of the stock in a transaction that occurred on Wednesday, January 16th. The shares were sold at an average price of $91.99, for a total transaction of $40,475.60. Following the sale, the chief marketing officer now directly owns 69,457 shares in the company, valued at $6,389,349.43. The disclosure for this sale can be found here. Insiders have sold 130,254 shares of company stock worth $12,477,037 over the last ninety days. Insiders own 3.52% of the company’s stock.
Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Utah Retirement Systems grew its stake in shares of Extra Space Storage by 0.4% during the fourth quarter. Utah Retirement Systems now owns 26,776 shares of the real estate investment trust’s stock valued at $2,423,000 after purchasing an additional 100 shares during the last quarter. Rehmann Capital Advisory Group lifted its holdings in Extra Space Storage by 22.5% in the fourth quarter. Rehmann Capital Advisory Group now owns 566 shares of the real estate investment trust’s stock valued at $51,000 after buying an additional 104 shares during the period. Stifel Financial Corp lifted its holdings in Extra Space Storage by 1.0% in the fourth quarter. Stifel Financial Corp now owns 15,356 shares of the real estate investment trust’s stock valued at $1,393,000 after buying an additional 152 shares during the period. Nissay Asset Management Corp Japan ADV lifted its holdings in Extra Space Storage by 0.9% in the fourth quarter. Nissay Asset Management Corp Japan ADV now owns 19,029 shares of the real estate investment trust’s stock valued at $1,722,000 after buying an additional 169 shares during the period. Finally, American International Group Inc. lifted its holdings in Extra Space Storage by 0.5% in the fourth quarter. American International Group Inc. now owns 48,672 shares of the real estate investment trust’s stock valued at $4,404,000 after buying an additional 258 shares during the period. 98.80% of the stock is currently owned by institutional investors and hedge funds.
About Extra Space Storage
Extra Space Storage Inc, headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of December 31, 2018, the Company owned and/or operated 1,647 self-storage stores in 39 states, Washington, DC and Puerto Rico. The Company's stores comprise approximately 1.2 million units and approximately 125.7 million square feet of rentable space.
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