Extra Space Storage Downgraded to Sell

Extra Space Storage (NYSE:EXR) has seen a shift in analyst recommendations as StockNews.com downgraded its rating from "hold" to "sell" in a recent report released on Friday.

Analyst Reactions and Target Price Changes

In addition to this downgrade, several other equity research firms have also re-evaluated their target prices for Extra Space Storage. For instance, Wells Fargo & Company adjusted their target price down from $170.00 to $165.00 while maintaining an "equal weight" rating on February 21st. Meanwhile, Royal Bank of Canada lowered its target price from $167.00 to $163.00, setting a "sector perform" rating in a report published on February 27th.

Scotiabank also revised their target price for Extra Space Storage from $167.00 to $165.00, aligning with a "sector perform" rating. Moreover, Barclays took a more optimistic stance despite cutting their target price from $192.00 to $184.00, continuing to label the stock as "overweight." Truist Financial, on the other hand, moved their price objective slightly from $167.00 to $168.00, while still maintaining a "hold" rating.

Overall, the stock currently has mixed ratings, with two analysts recommending a sell, six maintaining hold ratings, and four providing buy ratings. Market data shows that Extra Space Storage has an average consensus rating of "hold" and a consensus target price of approximately $171.36.

Stock Performance Overview

On Friday, during midday trading, Extra Space Storage shares rose by $2.06, reaching $157.11. The trading volume for the stock was around 1,807,243 shares, surpassing its daily average volume of 1,354,380. Financial metrics reveal a current ratio and quick ratio of 0.23 and a debt-to-equity ratio of 0.77. The company's market capitalization stands at about $33.31 billion, with a price-to-earnings ratio of 41.13 and a PEG ratio of 7.76.

Looking at the annual performance, Extra Space Storage stocks have a 52-week low of $131.02 and a high of $184.87. The stock also shows moving averages with a 50-day average of $152.91 and a 200-day average of $163.07.

Recent Earnings Report

Extra Space Storage released its latest earnings results on February 25th, posting earnings per share (EPS) of $2.03, which significantly exceeded analysts' expectations of $1.10 by a margin of $0.93. The company reported total revenues of $821.90 million, far surpassing the forecasted $707.34 million. The firm also showcased a net margin of 25.35% and a return on equity of 5.51%. Projections suggest that analysts anticipate Extra Space Storage will proceed to achieve approximately 8.1 EPS for the current fiscal year.

Insider Transactions

In recent insider activities, executive vice president William N. Springer sold 1,220 shares of Extra Space Storage on February 28th at an average price of $152.66, amounting to a total transaction of around $186,245. This sale reduced his ownership in the company to 20,158 shares valued at over $3 million. In another prominent transaction, CEO Joseph D. Margolis sold 7,500 shares on January 2nd at an average price of $148.01, totaling over $1.1 million, which marked a 31.00% decrease in his holdings. Insider ownership stands at 1.36% of the company’s stock.

Institutional Investor Movements

Recently, institutional investors have also been active in adjusting their stakes in Extra Space Storage. Tidal Investments LLC increased its holdings by 34.4% in the third quarter, now owning 12,640 shares worth approximately $2.3 million after adding 3,234 shares. Similarly, Swedbank AB grew its position by 4.5%, acquiring 10,408 additional shares for a total of 243,130 shares valued at approximately $43.8 million. UBS Asset Management saw a significant increase in holdings with a jump of 724.1%, now owning nearly 1.98 million shares worth around $357 million. Other firms, such as Duff & Phelps Investment Management Co. and Brown Financial Advisors, have also boosted their stakes in the company recently.

Currently, institutional investors hold a substantial 99.11% of Extra Space Storage, reflecting strong interest from large financial entities.

Company Overview

Extra Space Storage Inc, based in Salt Lake City, Utah, operates as a self-administered and self-managed real estate investment trust (REIT) and is a component of the S&P 500. As of the end of 2023, the company owns and/or manages 3,714 self-storage facilities across 42 states and Washington, DC, which consist of around 2.6 million storage units covering about 283 million square feet of rentable space under the brands Extra Space, Life Storage, and Storage Express.

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