Caption Management LLC Makes New Investment in CubeSmart $CUBE

Key Points

• Caption Management LLC has acquired a new position in CubeSmart, purchasing 12,977 shares valued at approximately $554,000 during the first quarter.
• Many institutional investors, including T. Rowe Price and JPMorgan Chase, have increased their stakes in CubeSmart, which now has over 97% of its shares owned by hedge funds and institutional investors.
• CubeSmart announced a quarterly dividend of $0.52, with a dividend yield of 5.1%, and its earnings per share exceeded analysts' estimates for the last quarter.

Caption Management LLC acquired a new stake in CubeSmart (NYSE:CUBE - Free Report) during the first quarter, according to its most recent 13F filing with the SEC. The fund acquired 12,977 shares of the real estate investment trust's stock, valued at approximately $554,000.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. T. Rowe Price Investment Management Inc. boosted its stake in 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 worth $370,049,000 after buying an additional 1,937,055 shares in the last quarter. Nuveen LLC purchased a new stake in CubeSmart in the first quarter worth approximately $53,980,000. JPMorgan Chase & Co. boosted its stake in 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 worth $237,519,000 after buying an additional 1,261,746 shares in the last quarter. Long Pond Capital LP purchased a new stake in CubeSmart in the first quarter worth approximately $47,358,000. Finally, Hudson Bay Capital Management LP purchased a new stake in CubeSmart in the fourth quarter worth approximately $45,805,000. 97.61% of the stock is currently owned by institutional investors.

CubeSmart Stock Up 2.2%

CUBE traded up $0.90 during trading on Wednesday, reaching $40.79. The stock had a trading volume of 1,874,315 shares, compared to its average volume of 1,412,936. The stock's 50 day moving average is $40.92 and its two-hundred day moving average is $41.30. The company has a current ratio of 0.06, a quick ratio of 0.06 and a debt-to-equity ratio of 1.18. The company has a market capitalization of $9.30 billion, a price-to-earnings ratio of 24.87, a P/E/G ratio of 9.11 and a beta of 0.94. CubeSmart has a one year low of $34.24 and a one year high of $55.14.

CubeSmart (NYSE:CUBE - Get Free Report) last released 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. CubeSmart had a return on equity of 13.12% and a net margin of 35.44%.The firm had revenue of $282.30 million for the quarter, compared to analysts' expectations of $275.71 million. During the same period in the prior year, the firm posted $0.64 earnings per share. The company's quarterly revenue 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 expect that CubeSmart will post 2.64 earnings per share for the current year.

CubeSmart Dividend Announcement

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

Analysts Set New Price Targets

Several analysts have weighed in on CUBE shares. Barclays lowered their price objective on CubeSmart from $48.00 to $45.00 and set an "equal weight" rating for the company in a research report on Friday, August 8th. Royal Bank Of Canada lowered their price objective on CubeSmart from $48.00 to $47.00 and set an "outperform" rating for the company in a research report on Monday, August 4th. BMO Capital Markets upgraded CubeSmart from a "market perform" rating to an "outperform" rating and upped their target price for the company from $48.00 to $49.00 in a report on Friday, June 20th. Bank of America upgraded CubeSmart from a "neutral" rating to a "buy" rating and upped their target price for the company from $44.00 to $50.00 in a report on Tuesday, May 13th. Finally, Citigroup decreased their target price on CubeSmart from $45.00 to $43.00 and set a "neutral" rating for the company in a report on Monday, August 25th. Six analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $46.69.

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.