Xponance Inc. recently disclosed its fourth quarter results, indicating a sharp decline in Extra Space Storage Inc. (NYSE:EXR) holdings by 15.2%. According to sources, the total number of shares sold amounted to about 3,278, which brought down Xponance’s Inc.’s total stake in the real estate investment trust to about 18,238 shares. The value of this stake currently lies at $2,684,000 as per the most recent filing with Securities and Exchange Commission.
However, research analysts have expressed mixed views regarding EXR’s future prospects. Bloomberg data suggests that three analysts believe that the stock has tremendous potential for growth and are thus recommending a ‘buy’ rating on it. Six other analysts have upheld their recommendation for the stock being a ‘hold’ while two others remain pessimistic about the outlook and resultantly given it a ‘sell’ rating.
Although shares of NYSE:EXR opened on Tuesday at $154.51 – remaining close to its lower end one-year price bracket of $139.97 – consistent with estimations that currently hold an average target price of $170.89 by industry experts. These reports are hinting that over time, it is expected that we will see subtle shifts in perception from these brokerages; a decreasing trend towards negative sentiment would imply favorable developments to come via earnings results or other catalysts.
Furthermore, Extra Space Storage has been facing financial headwinds- such as rising occupancy rates- alongside various upgrades and expansions across its portfolio concerning growth opportunities leveraging smart storage amenities through modern technology applications- another area where there could be promising future prospects moving forward.
Although analysts agree the market is trading only slightly higher than its assessed intrinsic values for now, investors should keep up-to-date with incoming earnings releases expected soon during Q1 (2021), updated forecasts from brokerages regarding future financial performance trends for emerging companies among numerous financial houses, and the development trends visible for expanding companies in the digital economy.
Extra Space Storage Attracts Attention from Investors and Analysts
Extra Space Storage (NYSE:EXR) has been attracting the attention of both institutional investors and hedge funds recently, with many adding to or reducing their stakes in the company. Parkside Financial Bank & Trust grew its stake by 80% during Q3 and now owns 144 shares of the real estate investment trust’s stock valued at $25,000 after acquiring an additional 64 shares. Similarly, EdgeRock Capital LLC acquired a new position whilst Ronald Blue Trust Inc. acquired a new position in Q2, all demonstrating confidence in Extra Space Storage’s long-term potential.
American National Bank became another such institutions to add to their EXR holdings – growing its stake by over 271% in Q4, outlining the growth potential that analysts continue to see in this area.
Corporate Insiders have been selling off shares for some time now, with Samrat Sondhi having sold an impressive 6,290 shares on Monday, February 27th alone, raking in over $1m.
However despite these insider sales, Extra Space Storage continues to attract research analysts keen to share their expert opinions; several have recently weighed in on EXR shares. Wolfe Research cut its rating from outperform to peer perform whilst JPMorgan Chase & Co went further cutting it again from overweight to neutral but reducing just $10 from its price target down from $177.00 to only $167 evidencing how they still consider Exra Space Storage still has great investment opportunities ahead.
On last quarterly earnings things didn’t go as expected though as revenue was up but earnings per Share were below what had been expected.
However there is still news that shareholders and investors can take comfort from as Extra Space Storage raised its quarterly dividend from $1.50 per share up to $1.62 per share highlighting a positive outlook for the firm’s future profitability and future cash flows which should give increased investor confidence.
Overall the consensus around the stock is to hold until further news emerges – whether that be from the CEO or future earning reports – before upping or reducing stakes again.