Zacks Investment Research Upgrades The Macerich (NYSE:MAC) to “Hold”

The Macerich (NYSE:MAC) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Wednesday, Zacks.com reports. The brokerage presently has a $19.00 target price on the real estate investment trust’s stock. Zacks Investment Research‘s price target points to a potential upside of 9.57% from the company’s current price.

According to Zacks, “Shares of Macerich have outperformed the industry in the past three months. Also, the trend in estimate revisions of 2021 funds from operations (FFO) per share indicates a favorable outlook for the company, with the consensus mark moving north over the past month. Notably, concentration of premium shopping centers in vibrant markets, efforts to support omni-channel retailing, along with balance-sheet strengthening moves augur well for its growth. The re-opening of the economy is raising hopes and leasing demand across its portfolio is on pace with the pre-pandemic 2019 levels. However, higher e-commerce adoption, shrinking traffic at its retail properties, store closures and tenant bankruptcy are key concerns. Liquidity-enhancing efforts like issuing additional shares and selling non-core assets are expected to lead to earnings dilution.”

Other equities analysts have also issued reports about the company. Truist boosted their target price on The Macerich from $14.00 to $15.00 in a research report on Monday, March 22nd. Truist Securities boosted their price objective on The Macerich from $14.00 to $15.00 in a research report on Monday, March 22nd. Morgan Stanley boosted their price objective on The Macerich from $11.20 to $12.00 and gave the company an “underweight” rating in a research report on Tuesday, May 18th. Finally, Mizuho boosted their price objective on The Macerich from $8.50 to $12.50 in a research report on Thursday, April 15th. Seven analysts have rated the stock with a sell rating, four have issued a hold rating and one has assigned a buy rating to the stock. The company has an average rating of “Hold” and an average target price of $11.77.

The Macerich stock opened at $17.34 on Wednesday. The firm has a market cap of $3.11 billion, a price-to-earnings ratio of -9.03, a P/E/G ratio of 6.28 and a beta of 2.03. The Macerich has a 1 year low of $6.42 and a 1 year high of $25.99. The stock’s 50-day moving average is $14.21. The company has a debt-to-equity ratio of 2.01, a current ratio of 4.36 and a quick ratio of 4.36.

The Macerich (NYSE:MAC) last posted its earnings results on Tuesday, May 11th. The real estate investment trust reported ($0.40) earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.20) by ($0.20). The company had revenue of $190.40 million for the quarter, compared to analyst estimates of $185.08 million. The Macerich had a negative return on equity of 11.74% and a negative net margin of 40.20%. The Macerich’s quarterly revenue was down 16.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.05 earnings per share. On average, equities research analysts expect that The Macerich will post 1.84 EPS for the current fiscal year.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Pendal Group Limited bought a new stake in The Macerich in the 1st quarter valued at approximately $1,233,000. Principal Financial Group Inc. lifted its stake in The Macerich by 14.9% in the 1st quarter. Principal Financial Group Inc. now owns 1,143,251 shares of the real estate investment trust’s stock valued at $13,376,000 after acquiring an additional 148,320 shares in the last quarter. Virtu Financial LLC bought a new stake in The Macerich in the 1st quarter valued at approximately $286,000. Squarepoint Ops LLC raised its stake in shares of The Macerich by 230.4% during the 1st quarter. Squarepoint Ops LLC now owns 331,500 shares of the real estate investment trust’s stock worth $3,879,000 after purchasing an additional 231,168 shares in the last quarter. Finally, Paloma Partners Management Co bought a new stake in shares of The Macerich during the 1st quarter worth approximately $198,000. Hedge funds and other institutional investors own 77.56% of the company’s stock.

About The Macerich

Macerich is a fully integrated, self-managed and self-administered real estate investment trust, which focuses on the acquisition, leasing, management, development and redevelopment of regional malls throughout the United States. Macerich currently owns 51 million square feet of real estate consisting primarily of interests in 47 regional shopping centers.

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