May 3, 2023 – Investment analysts at StockNews.com have lowered their rating of PotlatchDeltic (NASDAQ:PCH) from “hold” to “sell” in a recent research note. This downgrade comes after the company’s quarterly earnings report was released on April 24th.
The real estate investment trust reported earnings per share (EPS) of $0.23 for the quarter, surpassing the consensus estimate by $0.11. Despite this positive news, PotlatchDeltic saw a decrease in revenue compared to the same quarter last year, with a difference of 37.3%. The company’s net margin stands at an impressive 15.82%, with a return on equity of 8.87%.
PotlatchDeltic’s operations include the ownership and management of acres of timberlands, making it one of the leading companies in this area. It operates through three main segments: Timberlands, Wood Products, and Real Estate- all geared towards delivering logs, pulpwood, sawlogs, and stumpage.
While PotlatchDeltic has seen some success recently, it seems that analysts are not optimistic about its future performance. Research analysts forecast that the company will post EPS of 1.02 for the current fiscal year.
It remains to be seen what actions PotlatchDeltic will take to address this downgrade and potentially improve its position in the market. Nonetheless, investors should keep a close eye on any developments related to this ongoing situation as they could have significant impacts on future investment decisions.
Mixed Ratings and Insider Selling: Analysis of PotlatchDeltic Corp. as a Real Estate Investment Trust
PotlatchDeltic Corp., a real estate investment trust, has recently been the subject of analysis by several equities analysts. Among them, Citigroup initiated coverage on the company in a research note on March 1st, rating the stock as “buy”. DA Davidson also lowered their target price for PotlatchDeltic from $57.00 to $55.00 in a research note issued on January 24th, while Truist Financial established a “hold” rating and set a target price of $47.00 for the company.
Despite mixed ratings from analysts, PotlatchDeltic is seeing stable trading at NASDAQ:PCH with an opening price of $44.73 as of May 3rd. The company currently has a market cap of $3.57 billion with a P/E ratio of 17.14 and beta at 1.18. The firm’s one-year low point stands at $39.10 while its high is currently around $58.13.
The firm operates across three segments; Timberlands, Wood Products and Real Estate, primarily engaging in ownership and management of acres of timberlands where it delivers logs, pulpwood, sawlogs and stumpage to customers
However, recent insider-selling activity may have some investors reeling with VP William R. Dereu having sold 1,040 shares at an average price of $47.06 per share back in February in addition to Director Michael J.Covey selling 48,248 shares at an average price of $46.41 later that month.
That said institutional holdings remain remarkable with Norges Bank acquiring a new position valued at approximately $129 million during Q4 last year followed by Vanguard Group Inc., Pictet Asset Management SA BlackRock Inc and Inclusive Capital Partners L.P who all grew their stakes in PotlatchDeltic throughout Q4 last year into this year.
Overall, PotlatchDeltic has a consensus rating of “Moderate Buy” based on data from Bloomberg.com. While some analysts rate the stock differently, institutional holdings and consistent trading may indicate good things for this real estate investment trust’s future.