DDR Corp. (DDR) Raised to Buy at Zacks Investment Research
DDR Corp. (NYSE:DDR) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Monday. The brokerage presently has a $20.00 price target on the real estate investment trust’s stock. Zacks Investment Research’s price target would indicate a potential upside of 17.61% from the stock’s current price.
According to Zacks, “DDR’s well-diversified portfolio, concentrated mostly in prosperous regions, helps in generating relatively steady revenues. Further, the presence of well-capitalized tenants in its roster and long-term lease agreements with the tenants keep its growth momentum going. Also, aggressive capital recycling program and economic recovery, bode well for the long term. However, stiff competition, increasing online sales and any rise in interest rate remain as concerns.”
A number of other equities research analysts also recently commented on DDR. Jefferies Group began coverage on DDR Corp. in a research report on Thursday, June 30th. They issued a “hold” rating and a $19.00 target price on the stock. Mizuho downgraded DDR Corp. from a “neutral” rating to an “underperform” rating and cut their price objective for the company from $19.00 to $17.00 in a report on Monday, July 11th. Bank of America Corp. downgraded DDR Corp. from a “buy” rating to a “neutral” rating in a report on Monday, July 11th. Canaccord Genuity reiterated a “hold” rating on shares of DDR Corp. in a report on Monday, July 11th. Finally, Deutsche Bank AG boosted their price objective on DDR Corp. from $17.00 to $18.00 and gave the company a “hold” rating in a report on Monday, July 18th. Two analysts have rated the stock with a sell rating, ten have issued a hold rating and three have assigned a buy rating to the stock. The company currently has a consensus rating of “Hold” and a consensus target price of $18.88.
Shares of DDR Corp. (NYSE:DDR) traded down 2.553% during midday trading on Monday, reaching $16.985. The company’s stock had a trading volume of 2,421,881 shares. The company has a market cap of $6.20 billion, a P/E ratio of 28.498 and a beta of 1.00. DDR Corp. has a 12-month low of $15.36 and a 12-month high of $19.92. The stock’s 50-day moving average price is $18.27 and its 200-day moving average price is $18.03.
DDR Corp. (NYSE:DDR) last posted its earnings results on Tuesday, July 26th. The real estate investment trust reported $0.33 EPS for the quarter, beating the Zacks’ consensus estimate of $0.31 by $0.02. DDR Corp. had a return on equity of 7.76% and a net margin of 24.27%. The company had revenue of $245.90 million for the quarter, compared to the consensus estimate of $243.03 million. During the same quarter in the previous year, the business earned $0.31 earnings per share. The company’s revenue for the quarter was down 1.2% on a year-over-year basis. On average, analysts expect that DDR Corp. will post $1.26 EPS for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 11th. Stockholders of record on Friday, September 23rd will be given a dividend of $0.19 per share. The ex-dividend date of this dividend is Wednesday, September 21st. This represents a $0.76 annualized dividend and a dividend yield of 4.47%. DDR Corp.’s dividend payout ratio is currently 126.67%.
In other news, Director Robert H. Gidel sold 16,000 shares of the company’s stock in a transaction dated Friday, July 29th. The stock was sold at an average price of $19.50, for a total transaction of $312,000.00. Following the completion of the transaction, the director now directly owns 51,954 shares of the company’s stock, valued at approximately $1,013,103. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Scott D. Roulston acquired 5,500 shares of the stock in a transaction dated Tuesday, August 23rd. The shares were acquired at an average cost of $18.61 per share, with a total value of $102,355.00. Following the completion of the transaction, the director now owns 18,723 shares in the company, valued at approximately $348,435.03. The disclosure for this purchase can be found here. Insiders own 16.20% of the company’s stock.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in DDR. Royal Bank of Canada boosted its stake in shares of DDR Corp. by 367.8% in the second quarter. Royal Bank of Canada now owns 60,410 shares of the real estate investment trust’s stock worth $1,095,000 after buying an additional 47,495 shares during the period. Calvert Investment Management Inc. purchased a new stake in shares of DDR Corp. during the second quarter worth about $11,352,000. Schwab Charles Investment Management Inc. boosted its stake in shares of DDR Corp. by 13.2% in the second quarter. Schwab Charles Investment Management Inc. now owns 2,041,949 shares of the real estate investment trust’s stock worth $37,041,000 after buying an additional 237,533 shares during the period. Amalgamated Bank boosted its stake in shares of DDR Corp. by 5.6% in the second quarter. Amalgamated Bank now owns 37,200 shares of the real estate investment trust’s stock worth $698,000 after buying an additional 1,961 shares during the period. Finally, Legal & General Group Plc boosted its stake in shares of DDR Corp. by 12.5% in the second quarter. Legal & General Group Plc now owns 746,636 shares of the real estate investment trust’s stock worth $13,543,000 after buying an additional 82,763 shares during the period. 89.81% of the stock is owned by institutional investors and hedge funds.
About DDR Corp.
DDR Corp. is a self-administered and self-managed real estate investment trust (REIT). The Company operates through two segments: shopping centers and loan investments. The Company is in the business of acquiring, owning, developing, redeveloping, expanding, leasing and managing shopping centers. In addition, it engages in the origination and acquisition of loans and debt securities, which are generally collateralized directly or indirectly by shopping centers.
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