According to Zacks, “Shares of Prologis have outperformed its industry, over the past three months. Notably, the industrial real estate category continues to witness soaring demand for space amid healthy economy, job-market gains, high-consumer spending and e-commerce boom. Companies are making immense efforts to improve supply-chain efficiencies, propelling demand for logistics infrastructure and efficient distribution networks. Given Prologis’ balance-sheet strength and prudent financial management, it remains well poised to capitalize on this favorable trend. 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. Additionally, any protectionist trade policies will have an adverse impact on economic growth, as well as the company’s business over the long term.”
PLD has been the subject of a number of other research reports. Barclays reaffirmed a buy rating on shares of Prologis in a report on Thursday, February 21st. BMO Capital Markets reaffirmed a buy rating and issued a $70.00 price target on shares of Prologis in a report on Sunday, April 21st. Citigroup raised Prologis to a buy rating in a report on Wednesday, May 1st. KeyCorp upped their price target on Prologis from $72.00 to $77.00 and gave the stock a buy rating in a report on Monday, March 25th. Finally, Goldman Sachs Group began coverage on Prologis in a report on Wednesday. They issued a conviction-buy rating for the company. Four equities research analysts have rated the stock with a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the stock. The stock presently has a consensus rating of Buy and an average price target of $74.15.
Prologis (NYSE:PLD) last released its quarterly earnings results on Tuesday, April 16th. The real estate investment trust reported $0.73 earnings per share for the quarter, topping analysts’ consensus estimates of $0.72 by $0.01. The company had revenue of $696.80 million during the quarter, compared to analysts’ expectations of $687.21 million. Prologis had a return on equity of 6.83% and a net margin of 56.56%. Prologis’s quarterly revenue was up 25.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.80 EPS. Sell-side analysts anticipate that Prologis will post 3.22 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Friday, June 28th. Shareholders of record on Thursday, June 13th will be issued a dividend of $0.53 per share. The ex-dividend date is Wednesday, June 12th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 2.78%. Prologis’s payout ratio is currently 69.97%.
In other Prologis news, insider Edward S. Nekritz sold 16,059 shares of the stock in a transaction that occurred on Thursday, March 21st. The stock was sold at an average price of $71.86, for a total transaction of $1,153,999.74. Following the completion of the transaction, the insider now owns 51,792 shares of the company’s stock, valued at $3,721,773.12. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Edward S. Nekritz sold 30,671 shares of the stock in a transaction that occurred on Wednesday, April 24th. The shares were sold at an average price of $75.01, for a total value of $2,300,631.71. Following the transaction, the insider now directly owns 21,121 shares of the company’s stock, valued at approximately $1,584,286.21. The disclosure for this sale can be found here. 1.10% of the stock is owned by corporate insiders.
Several institutional investors have recently made changes to their positions in PLD. Cipher Capital LP purchased a new stake in shares of Prologis in the fourth quarter valued at approximately $4,142,000. Phocas Financial Corp. grew its position in shares of Prologis by 78.5% in the fourth quarter. Phocas Financial Corp. now owns 35,214 shares of the real estate investment trust’s stock valued at $2,068,000 after purchasing an additional 15,491 shares in the last quarter. Candriam Luxembourg S.C.A. grew its position in shares of Prologis by 3.3% in the fourth quarter. Candriam Luxembourg S.C.A. now owns 88,103 shares of the real estate investment trust’s stock valued at $5,173,000 after purchasing an additional 2,819 shares in the last quarter. Wambolt & Associates LLC purchased a new stake in shares of Prologis in the fourth quarter valued at approximately $562,000. Finally, Miles Capital Inc. grew its position in shares of Prologis by 19.7% in the fourth quarter. Miles Capital Inc. now owns 22,219 shares of the real estate investment trust’s stock valued at $1,305,000 after purchasing an additional 3,659 shares in the last quarter. 94.95% of the stock is owned by institutional investors and hedge funds.
Prologis Company Profile
Prologis, Inc is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of December 31, 2018, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 768 million square feet (71 million square meters) in 19 countries.
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