CubeSmart (NYSE:CUBE) Downgraded to "Sell" Rating by Wall Street Zen

Key Points

• CubeSmart has been downgraded from a "hold" to a "sell" rating by investment analysts at Wall Street Zen, indicating a negative shift in sentiment regarding the stock.
• CubeSmart's stock price has seen fluctuations, with a recent opening price of $41.23 and a consensus target price set at $46.20.
• Institutional investors possess a significant majority of CubeSmart's shares, owning 97.61% of the company's stock, reflecting strong institutional confidence in the REIT.

Wall Street Zen lowered shares of CubeSmart (NYSE:CUBE - Free Report) from a hold rating to a sell rating in a research report sent to investors on Saturday morning.

CUBE has been the subject of several other reports. BMO Capital Markets upgraded CubeSmart from a "market perform" rating to an "outperform" rating and increased their price objective for the stock from $48.00 to $49.00 in a report on Friday, June 20th. BNP Paribas Exane assumed coverage on CubeSmart in a report on Tuesday, June 24th. They set a "neutral" rating and a $46.00 price objective for the company. Barclays cut their price objective on CubeSmart from $48.00 to $45.00 and set an "equal weight" rating for the company in a report on Friday, August 8th. BNP Paribas upgraded CubeSmart to a "hold" rating in a report on Tuesday, June 24th. Finally, Citigroup cut their price objective on CubeSmart from $45.00 to $43.00 and set a "neutral" rating for the company in a report on Monday, August 25th. Seven equities research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, CubeSmart presently has a consensus rating of "Hold" and an average target price of $46.00.

CubeSmart Stock Down 1.0%

Shares of CUBE traded down $0.41 during mid-day trading on Friday, reaching $40.81. The company's stock had a trading volume of 1,309,576 shares, compared to its average volume of 1,605,864. The business has a fifty day moving average of $40.57 and a 200 day moving average of $41.23. The company has a market cap of $9.31 billion, a price-to-earnings ratio of 24.88, a price-to-earnings-growth ratio of 9.18 and a beta of 0.94. CubeSmart has a 1 year low of $34.24 and a 1 year high of $54.67. The company has a quick ratio of 0.06, a current ratio of 0.06 and a debt-to-equity ratio of 1.18.

CubeSmart (NYSE:CUBE - Get Free Report) last released its earnings results on Thursday, July 31st. The real estate investment trust reported $0.65 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.63 by $0.02. CubeSmart had a return on equity of 13.12% and a net margin of 35.44%.The company had revenue of $282.30 million during the quarter, compared to analyst estimates of $275.71 million. During the same quarter in the prior year, the company earned $0.64 earnings per share. The company's revenue for the quarter was up 6.0% on a year-over-year basis. CubeSmart has set its Q3 2025 guidance at 0.640-0.660 EPS. FY 2025 guidance at 2.540-2.600 EPS. As a group, analysts forecast that CubeSmart will post 2.64 earnings per share for the current fiscal year.

CubeSmart Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Wednesday, October 1st will be given a dividend of $0.52 per share. This represents a $2.08 annualized dividend and a yield of 5.1%. The ex-dividend date of this dividend is Wednesday, October 1st. CubeSmart's dividend payout ratio is presently 126.83%.

Hedge Funds Weigh In On CubeSmart

Several hedge funds have recently bought and sold shares of CUBE. Norges Bank acquired a new position in CubeSmart during the second quarter worth $458,008,000. T. Rowe Price Investment Management Inc. grew its position in shares of CubeSmart by 28.8% in the first quarter. T. Rowe Price Investment Management Inc. now owns 8,664,210 shares of the real estate investment trust's stock valued at $370,049,000 after purchasing an additional 1,937,055 shares during the last quarter. Millennium Management LLC grew its position in shares of CubeSmart by 129.6% in the first quarter. Millennium Management LLC now owns 2,261,419 shares of the real estate investment trust's stock valued at $96,585,000 after purchasing an additional 1,276,340 shares during the last quarter. Nuveen LLC acquired a new stake in shares of CubeSmart in the first quarter valued at about $53,980,000. Finally, JPMorgan Chase & Co. grew its position in shares of CubeSmart by 29.3% in the first quarter. JPMorgan Chase & Co. now owns 5,561,206 shares of the real estate investment trust's stock valued at $237,519,000 after purchasing an additional 1,261,746 shares during the last quarter. 97.61% of the stock is owned by institutional investors and hedge funds.

CubeSmart Company Profile

CubeSmart is a self-administered and self-managed real estate investment trust. The Company's self-storage properties are designed to offer affordable, easily accessible and, in most locations, climate-controlled storage space for residential and commercial customers. According to the 2023 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.