BlackRock Inc. Makes New $1.65 Billion Investment in Sun Communities, Inc. $SUI

Key Points

• BlackRock acquired 13.76 million Sun Communities shares worth approximately $1.65 billion during the second quarter, giving it an 11.3% stake. Institutional investors and hedge funds collectively own 99.59% of SUI.
• Sun Communities declared a quarterly dividend of $1.12 per share, equivalent to an annualized $4.48 payout and a 3.7% yield.
• SUI traded near $121.97, below its 52-week high of $137.85. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $139.38, although several firms recently downgraded or reduced their targets.

BlackRock Inc. acquired a new stake in Sun Communities, Inc. (NYSE:SUI - Free Report) during the second quarter, according to its most recent Form 13F filing with the SEC. The institutional investor acquired 13,757,945 shares of the real estate investment trust's stock, valued at approximately $1,649,715,000. BlackRock Inc. owned about 11.30% of Sun Communities at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also modified their holdings of SUI. Legal & General Group Plc boosted its holdings in shares of Sun Communities by 6.4% in the 4th quarter. Legal & General Group Plc now owns 1,080,585 shares of the real estate investment trust's stock valued at $133,895,000 after buying an additional 65,053 shares in the last quarter. Ilmarinen Mutual Pension Insurance Co acquired a new stake in Sun Communities during the 4th quarter worth $1,549,000. Commonwealth of Pennsylvania Public School Empls Retrmt SYS raised its stake in Sun Communities by 39.0% during the 1st quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 55,683 shares of the real estate investment trust's stock worth $7,014,000 after acquiring an additional 15,630 shares in the last quarter. DNB Asset Management AS lifted its position in Sun Communities by 218.0% in the fourth quarter. DNB Asset Management AS now owns 77,034 shares of the real estate investment trust's stock valued at $9,545,000 after acquiring an additional 52,812 shares during the last quarter. Finally, Allstate Corp lifted its position in Sun Communities by 215.6% in the fourth quarter. Allstate Corp now owns 16,113 shares of the real estate investment trust's stock valued at $1,997,000 after acquiring an additional 11,007 shares during the last quarter. 99.59% of the stock is currently owned by institutional investors and hedge funds.

Sun Communities Stock Performance

NYSE SUI opened at $121.97 on Friday. The firm has a market cap of $14.86 billion, a P/E ratio of -17.20, a P/E/G ratio of 5.57 and a beta of 0.78. Sun Communities, Inc. has a 52-week low of $115.90 and a 52-week high of $137.85. The business's 50-day moving average price is $121.18 and its 200 day moving average price is $125.88. The company has a quick ratio of 2.52, a current ratio of 2.52 and a debt-to-equity ratio of 0.70.

Sun Communities Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th were issued a dividend of $1.12 per share. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $4.48 annualized dividend and a dividend yield of 3.7%. Sun Communities's dividend payout ratio (DPR) is currently -63.19%.

Insiders Place Their Bets

In other news, Director Gary A. Shiffman sold 25,031 shares of the firm's stock in a transaction on Wednesday, June 24th. The shares were sold at an average price of $119.96, for a total value of $3,002,718.76. Following the completion of the sale, the director owned 857,761 shares in the company, valued at approximately $102,897,009.56. This trade represents a 2.84% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Fernando Castro-Caratini sold 23,750 shares of Sun Communities stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $124.43, for a total transaction of $2,955,212.50. Following the completion of the sale, the executive vice president directly owned 9,998 shares in the company, valued at approximately $1,244,051.14. The trade was a 70.37% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 1.58% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on SUI shares. Morgan Stanley dropped their price objective on Sun Communities from $135.00 to $126.00 and set an "equal weight" rating on the stock in a report on Wednesday, August 12th. Odeon Capital Group set a $135.00 target price on Sun Communities in a report on Thursday, July 9th. Weiss Ratings cut Sun Communities from a "hold (c)" rating to a "sell (d+)" rating in a research report on Wednesday, August 12th. Royal Bank Of Canada downgraded Sun Communities from a "moderate buy" rating to a "hold" rating in a research note on Monday, August 10th. Finally, Deutsche Bank Aktiengesellschaft set a $133.00 price target on Sun Communities in a research report on Thursday, May 14th. Two equities research analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, five have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $139.38.

Sun Communities Company Profile

Sun Communities, Inc is a publicly traded real estate investment trust (REIT) that specializes in the acquisition, ownership and operation of manufactured housing communities, recreational vehicle (RV) resorts and marinas. The company's portfolio spans more than 500 manufactured housing communities and over 160 RV resorts, offering affordable, long-term housing as well as short-stay recreational lodging. Through professional on-site management and amenity-rich community designs, Sun Communities serves a diverse customer base that includes retirees, workforce families and vacationers.

Founded in 1975 and headquartered in Southfield, Michigan, Sun Communities has grown organically and through strategic acquisitions to become one of the largest operators in its sector.

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