Taubman Centers (TCO) Lowered to Sell at Zacks Investment Research

Zacks Investment Research downgraded shares of Taubman Centers (NYSE:TCO) from a hold rating to a sell rating in a research report sent to investors on Tuesday morning.

According to Zacks, “Shares of Taubman Centers have underperformed the industry it belongs to over the past three months. Moreover, the trend in estimate revisions of current-quarter funds from operations (FFO) per share does not indicate a favorable outlook for the company. Notably, declining mall traffic, bankruptcies and store closures have emerged as pressing concerns for the company. Also, hike in interest rates and unfavorable foreign currency movements increase its risks. However, the company’s solid retail real estate portfolio, high-quality retailers in its tenant roster and diligent restructuring measures has the capacity to support its long-term growth. Focus on implementing cost-saving initiatives also augurs well.”

A number of other analysts also recently weighed in on the company. Sandler O’Neill upgraded Taubman Centers from a hold rating to a buy rating and lifted their price target for the company from $58.00 to $64.00 in a research note on Monday, October 22nd. Jefferies Financial Group restated a hold rating and issued a $63.00 price target on shares of Taubman Centers in a research note on Wednesday, September 5th. Scotiabank initiated coverage on Taubman Centers in a research note on Tuesday, October 16th. They issued an underperform rating on the stock. BMO Capital Markets set a $62.00 price target on Taubman Centers and gave the company a hold rating in a research note on Monday, July 30th. Finally, ValuEngine upgraded Taubman Centers from a sell rating to a hold rating in a research note on Monday, July 30th. Five analysts have rated the stock with a sell rating, seven have assigned a hold rating and two have assigned a buy rating to the company. The company presently has a consensus rating of Hold and a consensus price target of $61.19.

Taubman Centers stock opened at $50.42 on Tuesday. Taubman Centers has a 1-year low of $49.84 and a 1-year high of $66.61. The company has a market capitalization of $3.06 billion, a P/E ratio of 13.63, a price-to-earnings-growth ratio of 3.85 and a beta of 0.64.

Taubman Centers (NYSE:TCO) last posted its quarterly earnings results on Monday, October 29th. The real estate investment trust reported $0.34 earnings per share for the quarter, missing the Zacks’ consensus estimate of $0.86 by ($0.52). Taubman Centers had a net margin of 14.42% and a negative return on equity of 45.76%. The business had revenue of $159.12 million during the quarter, compared to analysts’ expectations of $159.68 million. During the same quarter last year, the firm earned $0.83 earnings per share. The firm’s quarterly revenue was up 3.9% compared to the same quarter last year. As a group, research analysts anticipate that Taubman Centers will post 3.79 EPS for the current year.

In other news, Director Jonathan Litt bought 1,000 shares of the firm’s stock in a transaction on Monday, November 5th. The shares were bought at an average cost of $54.32 per share, for a total transaction of $54,320.00. Following the completion of the transaction, the director now owns 3,653 shares in the company, valued at $198,430.96. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 31.20% of the stock is owned by insiders.

Institutional investors and hedge funds have recently bought and sold shares of the business. Commonwealth Bank of Australia purchased a new stake in Taubman Centers during the third quarter worth $179,000. World Asset Management Inc purchased a new stake in Taubman Centers during the second quarter worth $210,000. Fox Run Management L.L.C. purchased a new stake in Taubman Centers during the second quarter worth $215,000. Klingenstein Fields & Co. LLC purchased a new stake in Taubman Centers during the third quarter worth $216,000. Finally, Oakbrook Investments LLC purchased a new stake in Taubman Centers during the third quarter worth $243,000.

Taubman Centers Company Profile

Taubman Centers is an S&P MidCap 400 Real Estate Investment Trust engaged in the ownership, management and/or leasing of 26 regional, super-regional and outlet shopping centers in the U.S. and Asia. Taubman's U.S.-owned properties are the most productive in the publicly held U.S. regional mall industry.

See Also: Depreciation

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