Zacks Investment Research downgraded shares of DDR (NYSE:DDR) from a hold rating to a sell rating in a research note published on Friday morning.
According to Zacks, “Shares of DDR Corp. underperformed the industry it belongs to in the past six months. Further, the Zacks Consensus Estimate for 2018 funds from operations (FFO) per share was revised downward in a month’s time. Notably, in December 2017, DDR announced the decision of its board of directors to spin-off a portfolio of 50 assets into a separate public-traded REIT to be named Retail Value Inc. (RVI). This move will help the company streamline its portfolio and focus on core markets. However, the choppy retail real estate environment is anticipated to limit demand for space in the near term, thanks to the shift in customers’ shopping preferences toward online purchases. Also, aggressive asset disposition is expected to have a dilutive effect on earnings. Interest rate hike adds to its woes.”
Several other equities research analysts have also issued reports on the company. Evercore ISI lowered DDR from an in-line rating to an underperform rating in a research report on Monday, March 5th. Jefferies Group set a $8.00 target price on DDR and gave the company a hold rating in a research report on Tuesday, February 27th. Citigroup set a $10.00 target price on DDR and gave the company a buy rating in a research report on Tuesday, February 27th. Mizuho reaffirmed a hold rating on shares of DDR in a research report on Friday, February 23rd. Finally, UBS Group reaffirmed a neutral rating and set a $8.00 target price (down from $9.00) on shares of DDR in a research report on Tuesday, February 20th. Three research analysts have rated the stock with a sell rating, eleven have issued a hold rating and five have assigned a buy rating to the company’s stock. The company currently has an average rating of Hold and a consensus target price of $9.65.
DDR (NYSE:DDR) last announced its earnings results on Thursday, February 15th. The real estate investment trust reported $0.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.26 by $0.02. DDR had a negative return on equity of 5.56% and a negative net margin of 27.22%. The firm had revenue of $209.43 million during the quarter, compared to analyst estimates of $205.20 million. During the same period last year, the firm posted $0.30 EPS. The business’s revenue was down 9.8% compared to the same quarter last year. sell-side analysts predict that DDR will post 0.98 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 3rd. Investors of record on Friday, March 16th will be issued a $0.19 dividend. This represents a $0.76 annualized dividend and a yield of 10.12%. The ex-dividend date of this dividend is Thursday, March 15th. DDR’s dividend payout ratio (DPR) is currently -104.11%.
In other news, Director Alexander Otto acquired 1,245,942 shares of the firm’s stock in a transaction that occurred on Thursday, February 22nd. The stock was bought at an average price of $7.58 per share, with a total value of $9,444,240.36. Following the acquisition, the director now owns 47,633,065 shares in the company, valued at approximately $361,058,632.70. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 16.10% of the company’s stock.
A number of hedge funds have recently bought and sold shares of DDR. Verition Fund Management LLC purchased a new position in DDR during the 4th quarter valued at about $119,000. Lourd Capital LLC purchased a new position in DDR during the 4th quarter valued at about $136,000. GSA Capital Partners LLP purchased a new position in DDR during the 3rd quarter valued at about $151,000. Ladenburg Thalmann Financial Services Inc. grew its holdings in DDR by 79.8% during the 4th quarter. Ladenburg Thalmann Financial Services Inc. now owns 20,286 shares of the real estate investment trust’s stock valued at $182,000 after buying an additional 9,003 shares in the last quarter. Finally, The Manufacturers Life Insurance Company grew its holdings in DDR by 24.9% during the 2nd quarter. The Manufacturers Life Insurance Company now owns 23,930 shares of the real estate investment trust’s stock valued at $217,000 after buying an additional 4,768 shares in the last quarter. 81.82% of the stock is owned by institutional investors and hedge funds.
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DDR Corp. is a self-administered and self-managed real estate investment trust. It operates through two segments: shopping centers and loan investments. It is in the business of acquiring, owning, developing, redeveloping, expanding, leasing and managing shopping centers. As of December 31, 2016, it owned and managed approximately 106 million total square feet of gross leasable area (GLA).
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