Prologis (PLD) Lowered to “Sell” at Zacks Investment Research

Zacks Investment Research downgraded shares of Prologis (NYSE:PLD) from a hold rating to a sell rating in a report issued on Tuesday, December 26th.

According to Zacks, “Shares of Prologis have underperformed the industry it belongs to, in the past month. Moreover, the stock has seen the Zacks Consensus Estimate for fourth-quarter 2017 funds from operations (FFO) per share being revised downward over the same time frame. Notably, the industrial real estate market is enjoying elevated demand for logistics infrastructure amid an e-commerce boom, recovering economy and job market as well as healthy manufacturing environment. However, a whole lot of new buildings are slated to be completed and made available in the market in the near term, leading to higher supply and lesser scope for rent and occupancy growth. Also, rate hike have added to the company’s woes. Nevertheless, the company has balance sheet strength and capacity to offer modern distribution facilities in strategic infill locations.”

PLD has been the subject of a number of other research reports. SunTrust Banks upgraded shares of Prologis from a hold rating to a buy rating and set a $58.00 price target for the company in a research note on Tuesday, September 5th. BMO Capital Markets initiated coverage on shares of Prologis in a research note on Monday, September 11th. They set an outperform rating and a $69.00 price target for the company. Stifel Nicolaus restated a buy rating and set a $65.00 price target on shares of Prologis in a research note on Thursday, September 21st. BTIG Research reaffirmed a buy rating and set a $68.00 price objective (up from $62.00) on shares of Prologis in a report on Wednesday, September 27th. Finally, KeyCorp reaffirmed a buy rating and set a $65.00 price objective on shares of Prologis in a report on Friday, September 29th. One investment analyst has rated the stock with a sell rating, four have given a hold rating, nine have given a buy rating and one has issued a strong buy rating to the stock. Prologis currently has an average rating of Buy and a consensus target price of $66.57.

Prologis (NYSE:PLD) opened at $61.44 on Tuesday. The stock has a market cap of $32,690.00, a P/E ratio of 18.45, a price-to-earnings-growth ratio of 3.99 and a beta of 0.92. The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 0.53. Prologis has a fifty-two week low of $48.33 and a fifty-two week high of $67.53.

Prologis (NYSE:PLD) last released its quarterly earnings data on Tuesday, October 17th. The real estate investment trust reported $0.67 earnings per share for the quarter, meeting the consensus estimate of $0.67. The company had revenue of $531.18 million during the quarter, compared to analyst estimates of $573.68 million. Prologis had a net margin of 68.50% and a return on equity of 9.93%. Prologis’s revenue for the quarter was down 5.2% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.14 EPS. sell-side analysts forecast that Prologis will post 2.8 earnings per share for the current year.

The business also recently declared a quarterly dividend, which was paid on Friday, December 29th. Stockholders of record on Monday, December 18th were given a dividend of $0.44 per share. This represents a $1.76 annualized dividend and a dividend yield of 2.86%. The ex-dividend date of this dividend was Friday, December 15th. Prologis’s dividend payout ratio is presently 52.85%.

In related news, insider Edward S. Nekritz sold 15,752 shares of the company’s stock in a transaction that occurred on Thursday, December 28th. The shares were sold at an average price of $64.51, for a total value of $1,016,161.52. Following the transaction, the insider now directly owns 146,414 shares in the company, valued at $9,445,167.14. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Lori A. Palazzolo sold 4,900 shares of the company’s stock in a transaction that occurred on Thursday, December 14th. The stock was sold at an average price of $65.89, for a total transaction of $322,861.00. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 99,852 shares of company stock worth $6,600,519. Company insiders own 1.31% of the company’s stock.

A number of institutional investors and hedge funds have recently modified their holdings of PLD. Blair William & Co. IL purchased a new stake in Prologis in the second quarter worth approximately $239,000. Federated Investors Inc. PA boosted its stake in shares of Prologis by 27.7% during the second quarter. Federated Investors Inc. PA now owns 29,610 shares of the real estate investment trust’s stock valued at $1,736,000 after purchasing an additional 6,429 shares during the period. Pacer Advisors Inc. boosted its stake in shares of Prologis by 11.8% during the second quarter. Pacer Advisors Inc. now owns 13,193 shares of the real estate investment trust’s stock valued at $774,000 after purchasing an additional 1,394 shares during the period. OMERS ADMINISTRATION Corp purchased a new stake in shares of Prologis during the second quarter valued at approximately $1,448,000. Finally, Principal Financial Group Inc. boosted its stake in shares of Prologis by 5.7% during the second quarter. Principal Financial Group Inc. now owns 10,205,316 shares of the real estate investment trust’s stock valued at $598,440,000 after purchasing an additional 552,184 shares during the period. 95.36% of the stock is owned by institutional investors and hedge funds.

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About Prologis

Prologis, Inc is a real estate investment trust (REIT) company. The Company is engaged in logistics real estate business. The Company’s segments include Real Estate Operations and Strategic Capital. The Real estate operations segment consists of rental operations and development. The Company’s strategic capital segment includes asset management services, as well as services performed for unconsolidated co-investment ventures.

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