Extra Space Storage (NYSE:EXR) Shares Down 7.9% After Earnings Miss

Key Points

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Extra Space Storage Inc (NYSE:EXR - Get Free Report) shares dropped 7.9% on Thursday following a weaker than expected earnings announcement. The stock traded as low as $137.93 and last traded at $137.55. Approximately 578,943 shares traded hands during mid-day trading, a decline of 50% from the average daily volume of 1,162,277 shares. The stock had previously closed at $149.34.

The real estate investment trust reported $2.05 EPS for the quarter, missing analysts' consensus estimates of $2.06 by ($0.01). Extra Space Storage had a return on equity of 6.11% and a net margin of 27.84%. The company had revenue of $841.62 million for the quarter, compared to analysts' expectations of $719.43 million. The firm's revenue for the quarter was up 3.8% on a year-over-year basis. During the same period in the prior year, the firm earned $2.06 EPS.

Extra Space Storage Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Monday, June 16th were issued a $1.62 dividend. The ex-dividend date of this dividend was Monday, June 16th. This represents a $6.48 annualized dividend and a yield of 4.73%. Extra Space Storage's dividend payout ratio is presently 150.35%.

Analysts Set New Price Targets

A number of analysts have commented on EXR shares. Royal Bank Of Canada reduced their price objective on shares of Extra Space Storage from $163.00 to $160.00 and set a "sector perform" rating for the company in a research note on Thursday, May 1st. Barclays cut their price objective on Extra Space Storage from $181.00 to $178.00 and set an "overweight" rating for the company in a report on Friday, May 16th. Evercore ISI lifted their price objective on Extra Space Storage from $144.00 to $149.00 and gave the company an "in-line" rating in a report on Thursday, May 1st. Mizuho boosted their target price on Extra Space Storage from $141.00 to $153.00 and gave the stock an "outperform" rating in a report on Wednesday, May 28th. Finally, Wells Fargo & Company reduced their target price on Extra Space Storage from $165.00 to $160.00 and set an "equal weight" rating on the stock in a report on Wednesday, July 23rd. Nine analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $157.69.

Insider Buying and Selling

In related news, CEO Joseph D. Margolis sold 7,500 shares of the firm's stock in a transaction dated Tuesday, July 1st. The shares were sold at an average price of $150.35, for a total transaction of $1,127,625.00. Following the transaction, the chief executive officer directly owned 27,260 shares of the company's stock, valued at approximately $4,098,541. This trade represents a 21.58% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.96% of the stock is currently owned by corporate insiders.

Institutional Trading of Extra Space Storage

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Catalyst Capital Advisors LLC purchased a new stake in Extra Space Storage in the second quarter valued at approximately $88,000. Ethic Inc. increased its position in shares of Extra Space Storage by 40.9% during the 2nd quarter. Ethic Inc. now owns 5,639 shares of the real estate investment trust's stock valued at $822,000 after purchasing an additional 1,638 shares during the last quarter. Parcion Private Wealth LLC bought a new position in Extra Space Storage in the 2nd quarter worth approximately $284,000. Brookstone Capital Management raised its holdings in shares of Extra Space Storage by 4.3% during the 2nd quarter. Brookstone Capital Management now owns 70,076 shares of the real estate investment trust's stock worth $10,332,000 after acquiring an additional 2,890 shares in the last quarter. Finally, Jacobsen Capital Management lifted its position in Extra Space Storage by 0.4% in the second quarter. Jacobsen Capital Management now owns 38,802 shares of the real estate investment trust's stock worth $5,721,000 after buying an additional 162 shares during the last quarter. Institutional investors own 99.11% of the company's stock.

Extra Space Storage Stock Performance

The stock has a market cap of $29.08 billion, a PE ratio of 31.85, a price-to-earnings-growth ratio of 3.69 and a beta of 1.10. The company has a quick ratio of 0.33, a current ratio of 0.33 and a debt-to-equity ratio of 0.85. The firm has a 50 day moving average price of $149.11 and a 200 day moving average price of $148.48.

About Extra Space Storage

Extra Space Storage Inc, headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of December 31, 2023, the Company owned and/or operated 3,714 self-storage stores in 42 states and Washington, DC The Company's stores comprise approximately 2.6 million units and approximately 283.0 million square feet of rentable space operating under the Extra Space, Life Storage and Storage Express brands.

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