American Assets Investment Management LLC Takes Position in CubeSmart (NYSE:CUBE)

Key Points

• American Assets Investment Management LLC acquired 60,317 shares of CubeSmart, valued at approximately $2.58 million, making it the firm's 28th largest investment position.
• Several hedge funds significantly increased their stakes in CubeSmart, with Capital World Investors raising its investment by 184.5% in the last quarter.
• CubeSmart will pay a quarterly dividend of $0.52 on October 15, which represents a yield of 5.05%, although its dividend payout ratio is notably high at 123.08%.

American Assets Investment Management LLC purchased a new position in shares of CubeSmart (NYSE:CUBE - Free Report) in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 60,317 shares of the real estate investment trust's stock, valued at approximately $2,576,000. CubeSmart accounts for 1.1% of American Assets Investment Management LLC's investment portfolio, making the stock its 28th biggest holding.

A number of other hedge funds have also modified their holdings of CUBE. Arkadios Wealth Advisors raised its position in shares of CubeSmart by 28.1% during the 1st quarter. Arkadios Wealth Advisors now owns 9,878 shares of the real estate investment trust's stock worth $422,000 after acquiring an additional 2,165 shares in the last quarter. LPL Financial LLC raised its position in shares of CubeSmart by 16.5% during the 1st quarter. LPL Financial LLC now owns 126,572 shares of the real estate investment trust's stock worth $5,406,000 after acquiring an additional 17,962 shares in the last quarter. Inspire Advisors LLC acquired a new position in CubeSmart during the first quarter worth approximately $207,000. Zurcher Kantonalbank Zurich Cantonalbank increased its position in CubeSmart by 3.4% during the first quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 174,561 shares of the real estate investment trust's stock worth $7,456,000 after buying an additional 5,680 shares during the period. Finally, TD Asset Management Inc increased its position in CubeSmart by 51.5% during the first quarter. TD Asset Management Inc now owns 145,030 shares of the real estate investment trust's stock worth $6,194,000 after buying an additional 49,300 shares during the period. 97.61% of the stock is currently owned by hedge funds and other institutional investors.

CubeSmart Price Performance

Shares of CubeSmart stock traded up $0.98 during trading on Friday, reaching $39.89. The company's stock had a trading volume of 3,597,513 shares, compared to its average volume of 1,798,492. The company has a quick ratio of 0.07, a current ratio of 0.07 and a debt-to-equity ratio of 1.17. CubeSmart has a 12-month low of $34.24 and a 12-month high of $55.14. The company has a market capitalization of $9.09 billion, a P/E ratio of 24.32, a price-to-earnings-growth ratio of 7.15 and a beta of 0.94. The business has a 50 day moving average price of $42.24 and a 200-day moving average price of $41.58.

CubeSmart (NYSE:CUBE - Get Free Report) last posted its earnings results on Thursday, July 31st. The real estate investment trust reported $0.65 EPS for the quarter, topping analysts' consensus estimates of $0.63 by $0.02. The company had revenue of $282.30 million for the quarter, compared to the consensus estimate of $275.71 million. CubeSmart had a return on equity of 13.10% and a net margin of 35.44%. CubeSmart's quarterly revenue was up 6.0% compared to the same quarter last year. During the same period in the previous year, the business earned $0.64 earnings per share. As a group, sell-side analysts anticipate that CubeSmart will post 2.64 EPS for the current year.

CubeSmart Announces Dividend

The company 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 dividend on an annualized basis and a yield of 5.2%. The ex-dividend date is Wednesday, October 1st. CubeSmart's payout ratio is presently 123.08%.

Analyst Upgrades and Downgrades

Several research firms have commented on CUBE. Mizuho lifted their price target on CubeSmart from $39.00 to $43.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 28th. Scotiabank lifted their price target on CubeSmart from $40.00 to $45.00 and gave the stock a "sector perform" rating in a research report on Monday, May 12th. Barclays cut their price target on CubeSmart from $49.00 to $48.00 and set an "equal weight" rating on the stock in a research report on Friday, May 16th. Bank of America raised CubeSmart from a "neutral" rating to a "buy" rating and lifted their price target for the stock from $44.00 to $50.00 in a research report on Tuesday, May 13th. Finally, Wolfe Research began coverage on CubeSmart in a research report on Monday, May 19th. They set an "outperform" rating and a $48.00 price target on the stock. Ten research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $47.20.

CubeSmart 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.