Centerspace (NYSE:CSR) Shares Gap Up – Still a Buy?

Centerspace (NYSE:CSR) gapped up before the market opened on Wednesday . The stock had previously closed at $52.71, but opened at $57.90. Centerspace shares last traded at $58.22, with a volume of 430,837 shares.

More Centerspace News

Here are the key news stories impacting Centerspace this week:

• Positive Sentiment: Centerspace agreed to be acquired by Independence Realty Trust in a transaction valued at approximately $8.1 billion, including debt. Centerspace shareholders would receive 3.800 IRT shares for each CSR share and own roughly 22% of the combined company. The merger could provide shareholders with exposure to a larger apartment REIT and potential operating and financial synergies. Independence Realty Trust and Centerspace Agree to $8.1 Billion Merger
• Positive Sentiment: A BTIG analyst reiterated a Buy rating on Independence Realty Trust and cited merger synergies and an accretive growth outlook. While the view was issued on IRT, it supports the strategic rationale for combining the two residential REITs and may improve market sentiment toward the transaction. Michael Gorman Reaffirms Buy on IRT

Analysts Set New Price Targets

A number of research analysts have weighed in on CSR shares. Weiss Ratings lowered shares of Centerspace from a “hold (c)” rating to a “hold (c-)” rating in a research note on Wednesday, August 19th. Piper Sandler lowered their target price on Centerspace from $60.00 to $58.00 and set a “neutral” rating for the company in a report on Thursday, August 27th. UBS Group lifted their price target on Centerspace from $66.00 to $70.00 and gave the company a “neutral” rating in a research note on Thursday, May 14th. Compass Point upgraded Centerspace from a “neutral” rating to a “buy” rating and boosted their price target for the company from $64.50 to $80.00 in a report on Wednesday. Finally, Wells Fargo & Company reduced their price objective on Centerspace from $60.00 to $57.00 and set an “equal weight” rating for the company in a research report on Tuesday, September 1st. Two equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $64.33.

Centerspace Stock Up 0.6%

The company has a current ratio of 0.03, a quick ratio of 0.03 and a debt-to-equity ratio of 0.87. The firm’s 50 day simple moving average is $55.01 and its 200-day simple moving average is $59.56. The stock has a market capitalization of $969.03 million, a price-to-earnings ratio of 45.81 and a beta of 0.86.

Centerspace (NYSE:CSR) last issued its quarterly earnings results on Monday, August 3rd. The company reported ($0.07) EPS for the quarter, topping the consensus estimate of ($0.13) by $0.06. The firm had revenue of $65.78 million for the quarter, compared to analysts’ expectations of $66.29 million. Centerspace had a net margin of 7.97% and a return on equity of 2.58%. Centerspace has set its FY 2026 guidance at 4.580-4.680 EPS. Equities analysts expect that Centerspace will post 4.67 earnings per share for the current fiscal year.

Centerspace Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 14th. Shareholders of record on Tuesday, September 29th will be paid a $0.77 dividend. This represents a $3.08 dividend on an annualized basis and a yield of 5.3%. The ex-dividend date is Tuesday, September 29th. Centerspace’s dividend payout ratio (DPR) is currently 244.44%.

Insider Activity at Centerspace

In related news, Director John A. Schissel acquired 500 shares of the business’s stock in a transaction dated Thursday, June 18th. The stock was bought at an average price of $54.90 per share, with a total value of $27,450.00. Following the acquisition, the director owned 17,195 shares in the company, valued at $944,005.50. This represents a 2.99% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Rodney Jones-Tyson bought 1,700 shares of the firm’s stock in a transaction that occurred on Monday, June 22nd. The stock was purchased at an average cost of $55.26 per share, with a total value of $93,942.00. Following the completion of the purchase, the director directly owned 7,877 shares of the company’s stock, valued at $435,283.02. This represents a 27.52% increase in their position. The SEC filing for this purchase provides additional information. 0.49% of the stock is owned by insiders.

Institutional Trading of Centerspace

Several institutional investors and hedge funds have recently added to or reduced their stakes in CSR. BlackRock Inc. bought a new stake in shares of Centerspace in the 2nd quarter valued at about $167,912,000. Wellington Management Group LLP grew its holdings in Centerspace by 324.4% during the fourth quarter. Wellington Management Group LLP now owns 855,869 shares of the company’s stock worth $57,104,000 after purchasing an additional 654,209 shares during the period. Long Pond Capital LP increased its position in Centerspace by 108.0% during the fourth quarter. Long Pond Capital LP now owns 444,101 shares of the company’s stock worth $29,630,000 after buying an additional 230,638 shares during the last quarter. Charles Schwab Investment Management Inc. raised its stake in Centerspace by 9.2% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 340,286 shares of the company’s stock valued at $22,704,000 after buying an additional 28,809 shares during the period. Finally, Voss Capital LP bought a new stake in Centerspace in the fourth quarter valued at approximately $22,068,000. 79.00% of the stock is owned by institutional investors.

Centerspace Company Profile

Centerspace is an owner and operator of apartment communities committed to providing great homes by focusing on integrity and serving others. Founded in 1970, as of September 30, 2023, Centerspace owned interests in 71 apartment communities consisting of 12,785 apartment homes located in Colorado, Minnesota, Montana, Nebraska, North Dakota, and South Dakota. Centerspace was named a Top Workplace for the fourth consecutive year in 2023 by the Minneapolis Star Tribune.