Mid-America Apartment Communities (MAA) Lowered to “Sell” at Zacks Investment Research

Zacks Investment Research lowered shares of Mid-America Apartment Communities (NYSE:MAA) from a hold rating to a sell rating in a research note released on Wednesday morning.

According to Zacks, “Mid-America Apartment Communities, also known as MAA, reported fourth-quarter funds from operations (FFO) per share of $1.55 per share, meeting the Zacks Consensus Estimate. Results were supported by growth in the top line and average effective rent per unit. However, elevated supply levels in the company’s market negatively impacted occupancy growth. In fact, physical occupancy for the same-store portfolio remined sequentially unchanged for the Dec-end quarter. Additionally, high geographic concentration of assets and hike in interest rate remain concerns for the company. Shares of MAA have underperformed its industry, over the past three months. In addition, the trend in estimate revisions of 2019 FFO per share does not indicate a favorable outlook for the company.”

A number of other equities research analysts also recently weighed in on MAA. ValuEngine raised Mid-America Apartment Communities from a hold rating to a buy rating in a research report on Tuesday, January 29th. Barclays reiterated a buy rating on shares of Mid-America Apartment Communities in a research report on Wednesday, January 23rd. KeyCorp set a $108.00 price target on Mid-America Apartment Communities and gave the company a buy rating in a research report on Thursday, December 20th. Capital One Financial assumed coverage on Mid-America Apartment Communities in a research report on Monday, October 22nd. They issued an equal weight rating and a $101.50 price objective for the company. Finally, Citigroup set a $105.00 price target on Mid-America Apartment Communities and gave the stock a hold rating in a research note on Monday, November 5th. One analyst has rated the stock with a sell rating, seven have issued a hold rating and six have given a buy rating to the company’s stock. The company has a consensus rating of Hold and a consensus target price of $103.06.

Shares of NYSE:MAA traded up $0.26 during mid-day trading on Wednesday, reaching $102.94. 14,276 shares of the company traded hands, compared to its average volume of 641,902. Mid-America Apartment Communities has a 52 week low of $85.16 and a 52 week high of $104.98. The company has a current ratio of 0.12, a quick ratio of 0.17 and a debt-to-equity ratio of 0.71. The company has a market cap of $11.69 billion, a PE ratio of 17.03, a price-to-earnings-growth ratio of 3.16 and a beta of 0.50.

Mid-America Apartment Communities (NYSE:MAA) last posted its earnings results on Wednesday, January 30th. The real estate investment trust reported $1.55 EPS for the quarter, meeting analysts’ consensus estimates of $1.55. Mid-America Apartment Communities had a return on equity of 3.41% and a net margin of 14.01%. The firm had revenue of $398.15 million during the quarter, compared to the consensus estimate of $399.19 million. During the same period in the prior year, the company earned $1.50 EPS. The company’s quarterly revenue was up 4.0% compared to the same quarter last year. Equities research analysts predict that Mid-America Apartment Communities will post 6.19 earnings per share for the current fiscal year.

The business also recently announced a quarterly dividend, which was paid on Thursday, January 31st. Shareholders of record on Tuesday, January 15th were issued a dividend of $0.96 per share. This represents a $3.84 dividend on an annualized basis and a yield of 3.73%. The ex-dividend date was Monday, January 14th. This is a boost from Mid-America Apartment Communities’s previous quarterly dividend of $0.92. Mid-America Apartment Communities’s dividend payout ratio is 63.58%.

In other news, insider H Eric Bolton, Jr. sold 262 shares of the firm’s stock in a transaction on Wednesday, January 16th. The stock was sold at an average price of $97.84, for a total transaction of $25,634.08. Following the sale, the insider now owns 224,347 shares in the company, valued at $21,950,110.48. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders have sold 1,122 shares of company stock worth $108,746 in the last 90 days. Insiders own 1.26% of the company’s stock.

A number of large investors have recently added to or reduced their stakes in the business. SRS Capital Advisors Inc. bought a new stake in Mid-America Apartment Communities in the third quarter valued at about $120,000. First Hawaiian Bank bought a new position in shares of Mid-America Apartment Communities in the third quarter valued at $171,000. Mirae Asset Global Investments Co. Ltd. bought a new position in shares of Mid-America Apartment Communities in the third quarter valued at $225,000. Lourd Capital LLC acquired a new stake in Mid-America Apartment Communities during the 3rd quarter valued at $227,000. Finally, Parametrica Management Ltd acquired a new stake in Mid-America Apartment Communities during the 3rd quarter valued at $228,000. 93.40% of the stock is currently owned by institutional investors.

About Mid-America Apartment Communities

MAA, an S&P 500 company, is a real estate investment trust, or REIT, focused on delivering full-cycle and superior investment performance for shareholders through the ownership, management, acquisition, development and redevelopment of quality apartment communities in the Southeast, Southwest, and Mid-Atlantic regions of the United States.

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