In a recent Form 13F filing with the Securities & Exchange Commission, Principal Financial Group Inc. has raised its holdings in Paramount Group, Inc. (NYSE:PGRE) by 305.4%. The financial services provider now owns 80,119 shares of the company’s stock worth $476,000 as of the most recent SEC filing in the fourth quarter. This news may come as a surprise to some, but it is important for investors to understand the implications of such a move.
Additionally, CEO Albert P. Behler has been making significant purchases of Paramount Group stock over the past several months. On Wednesday, March 22nd he acquired 30,000 shares at an average cost of $4.36 per share for a total value of $130,800.00 and on Friday March 17th he bought 40,000 shares at an average cost of $4.28 per share for a total value of $171,200. His purchases have brought his total ownership in the company to over half a million shares valued at approximately $2.3 million.
Insiders have purchased a total of 134,500 shares worth $599,165 over the past ninety days and collectively own nearly twelve percent of the company’s stock.
On top of this positive news for investors comes Paramount Group’s quarterly dividend payment on Friday April 14th that was paid to shareholders who held stocks as of Friday March 31st at a rate of $0.078 per share – representing a yield of 7%.
With all these figures indicating positive investor sentiment toward Paramount Group and its current management team led by CEO Albert P Behler – largely due to its strong financials that allowed it to maintain operations through COVID and its strategic decisioning which continues even today – it is no surprise that PGRE remains popular with vigilant investors looking to invest long-term into profitable firms operating within high-growth markets.
However, it is important for investors to understand and study such trends and market growth indicators carefully before committing any financial resources towards investments of this nature. As with all investments, there is always a chance of risk – albeit minimal – and individuals should exercise caution in their investment strategies, particularly as the economy settles into the post-Covid era.
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Mixed Reviews for Paramount Group’s Potential Growth Despite Recent Institutional Investor Changes
Paramount Group, Inc. has recently seen several large institutional investors modify their holdings in the financial services provider. Point72 Hong Kong Ltd boosted its ownership by 145.8% during the third quarter, while Royal Bank of Canada increased their position by 13.9%. Other notable institutional investors include Jane Street Group LLC, Van ECK Associates Corp, and ProShare Advisors LLC.
These changes in ownership are reflected in the market performance of NYSE PGRE, which opened at $4.40 on June 6, 2023. The stock has experienced significant fluctuations over the past year, ranging from a low of $3.90 to a high of $8.81 with a current market cap of $955.72 million.
Despite this volatility, analysts have issued mixed reviews on the stock’s potential for growth. Wells Fargo recently cut their price objective from $5.00 to $4.00 and assigned an “underweight” rating due to perceived risks associated with Paramount Group’s debt-to-equity ratio of 0.87.
Bank of America similarly reported a “neutral” rating with a target price of $5.50 back in March 2023, citing uncertainty surrounding macroeconomic factors such as interest rates and inflation levels.
Morgan Stanley lowered their price objective from $5.30 to $4.50 around the same time period but did not provide additional commentary on their decision.
More recently, StockNews.com rated Paramount Group as a “hold” investment opportunity in May 2023 without providing further analysis or insights into their reasoning behind this recommendation.
Overall, it appears that Paramount Group remains a somewhat risky investment option despite recent increases in institutional holdings observed earlier this year by Point72 Hong Kong Ltd and Royal Bank of Canada among others – indicating that investors should remain vigilant and keep an eye out for any future developments that may impact the company’s financial stability or growth prospects.