Taubman Centers (TCO) Cut to “Sell” at Zacks Investment Research

Taubman Centers (NYSE:TCO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Wednesday, January 10th.

According to Zacks, “Shares of Taubman Centers underperformed the industry it belongs to, in the past year. Moreover, the stock has seen the Zacks Consensus Estimate for full year 2017 funds from operations (FFO) per share being revised downward in a month’s time. The company’s performance in the near term is anticipated to be adversely affected by the choppy retail real estate environment. In fact, with a rapid shift in customers’ shopping preferences and growing online purchases, mall traffic continues to suffer. These have made retailers reconsider their footprint and eventually opt for store closures. This is expected to impact demand for retail space at Taubman’s shopping centers. Also, hike in interest rates and unfavorable foreign currency movements increase its risks. Nonetheless, the company’s solid retail portfolio, high-quality retailers and diligent restructuring initiatives have the capacity to support its growth in the long term.”

TCO has been the subject of several other research reports. BMO Capital Markets upgraded Taubman Centers from an “underperform” rating to a “market perform” rating and set a $48.00 price target for the company in a report on Wednesday, December 13th. Boenning Scattergood reiterated a “hold” rating on shares of Taubman Centers in a report on Friday, November 3rd. Mizuho reissued a “neutral” rating on shares of Taubman Centers in a research report on Wednesday, November 8th. Jefferies Group reissued a “hold” rating and issued a $57.00 price objective on shares of Taubman Centers in a research report on Tuesday, September 26th. Finally, JPMorgan Chase & Co. cut Taubman Centers from an “overweight” rating to a “neutral” rating and dropped their price target for the company from $64.00 to $57.00 in a research report on Tuesday, September 26th. Two research analysts have rated the stock with a sell rating, nine have given a hold rating and one has assigned a buy rating to the stock. Taubman Centers presently has a consensus rating of “Hold” and a consensus price target of $65.00.

Shares of Taubman Centers (NYSE:TCO) opened at $60.31 on Wednesday. The firm has a market capitalization of $3,660.00, a P/E ratio of 56.90, a price-to-earnings-growth ratio of 4.90 and a beta of 0.61. Taubman Centers has a 1-year low of $44.78 and a 1-year high of $71.77. The company has a quick ratio of 0.35, a current ratio of 0.35 and a debt-to-equity ratio of -21.77.

Taubman Centers (NYSE:TCO) last released its quarterly earnings data on Wednesday, November 1st. The real estate investment trust reported $0.83 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.89 by ($0.06). Taubman Centers had a net margin of 13.21% and a negative return on equity of 75.87%. The firm had revenue of $153.20 million for the quarter, compared to the consensus estimate of $155.95 million. During the same quarter in the prior year, the firm earned $0.94 EPS. The company’s revenue was up 3.5% compared to the same quarter last year. equities analysts anticipate that Taubman Centers will post 3.69 EPS for the current year.

In other news, Director Cornelia Connelly Marakovits acquired 4,000 shares of Taubman Centers stock in a transaction dated Friday, December 15th. The shares were purchased at an average cost of $63.35 per share, for a total transaction of $253,400.00. Following the transaction, the director now owns 7,403 shares of the company’s stock, valued at $468,980.05. The purchase was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, COO William S. Taubman sold 35,000 shares of the stock in a transaction dated Wednesday, December 13th. The shares were sold at an average price of $62.68, for a total value of $2,193,800.00. Following the sale, the chief operating officer now owns 67,633 shares of the company’s stock, valued at $4,239,236.44. The disclosure for this sale can be found here. Insiders sold a total of 93,318 shares of company stock worth $5,849,897 over the last 90 days. Corporate insiders own 31.20% of the company’s stock.

A number of hedge funds have recently modified their holdings of TCO. Lourd Capital LLC purchased a new stake in Taubman Centers in the 4th quarter worth approximately $218,000. Virtu KCG Holdings LLC purchased a new stake in Taubman Centers in the 2nd quarter worth approximately $227,000. Creative Planning purchased a new position in shares of Taubman Centers in the 4th quarter valued at approximately $240,000. Riverhead Capital Management LLC lifted its stake in shares of Taubman Centers by 83.2% in the 2nd quarter. Riverhead Capital Management LLC now owns 4,397 shares of the real estate investment trust’s stock valued at $262,000 after purchasing an additional 1,997 shares during the period. Finally, Shelton Capital Management purchased a new position in shares of Taubman Centers in the 2nd quarter valued at approximately $269,000.

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Taubman Centers Company Profile

Taubman Centers, Inc is a self-administered and self-managed real estate investment trust (REIT). The Company’s segment is focused on owning, developing and managing regional shopping centers. The Taubman Realty Group Limited Partnership (the Operating Partnership or TRG) is majority-owned partnership subsidiary of the Company that owns direct or indirect interests in all of its real estate properties.

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