Highwoods Properties, Inc. $HIW Shares Sold by SCS Capital Management LLC

Key Points

• Institutional ownership shifted as SCS Capital Management cut its Highwoods Properties stake by 55.3% in the fourth quarter, while several other institutions added to their positions. Overall, institutional investors and hedge funds still own 96.31% of the stock.
• Analyst sentiment remains cautious, with the consensus rating at Hold and an average price target of $27.33. Recent target changes were mixed, including Buy ratings from Deutsche Bank and Baird, but several firms lowered their targets or stayed neutral.
• The REIT posted solid quarterly results and shareholder returns, beating earnings and revenue estimates in its latest report and maintaining a $0.50 quarterly dividend. The company also authorized a $250 million share buyback, signaling management confidence in the stock.

SCS Capital Management LLC cut its stake in Highwoods Properties, Inc. (NYSE:HIW - Free Report) by 55.3% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 225,232 shares of the real estate investment trust's stock after selling 278,903 shares during the period. SCS Capital Management LLC owned 0.20% of Highwoods Properties worth $5,815,000 at the end of the most recent reporting period.

Several other institutional investors have also recently added to or reduced their stakes in the stock. Nomura Asset Management Co. Ltd. increased its stake in Highwoods Properties by 4.7% during the fourth quarter. Nomura Asset Management Co. Ltd. now owns 166,530 shares of the real estate investment trust's stock valued at $4,300,000 after purchasing an additional 7,500 shares during the last quarter. Norges Bank bought a new stake in Highwoods Properties during the fourth quarter valued at $26,251,000. Geode Capital Management LLC increased its stake in Highwoods Properties by 0.8% during the fourth quarter. Geode Capital Management LLC now owns 2,149,230 shares of the real estate investment trust's stock valued at $55,503,000 after purchasing an additional 16,327 shares during the last quarter. Legal & General Group Plc increased its stake in Highwoods Properties by 13.1% during the fourth quarter. Legal & General Group Plc now owns 823,917 shares of the real estate investment trust's stock valued at $21,274,000 after purchasing an additional 95,408 shares during the last quarter. Finally, New Age Alpha Advisors LLC increased its stake in Highwoods Properties by 26.3% during the fourth quarter. New Age Alpha Advisors LLC now owns 36,313 shares of the real estate investment trust's stock valued at $938,000 after purchasing an additional 7,561 shares during the last quarter. 96.31% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several analysts have weighed in on the stock. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $28.00 target price on shares of Highwoods Properties in a research note on Thursday, May 14th. Robert W. Baird set a $29.00 target price on shares of Highwoods Properties in a research note on Wednesday, February 25th. Truist Financial lowered their price target on shares of Highwoods Properties from $29.00 to $23.00 and set a "hold" rating for the company in a research report on Tuesday, March 17th. Morgan Stanley upgraded shares of Highwoods Properties from an "underweight" rating to an "equal weight" rating and lowered their price target for the stock from $24.00 to $23.00 in a research report on Tuesday, March 31st. Finally, Mizuho lowered their price target on shares of Highwoods Properties from $30.00 to $25.00 and set a "neutral" rating for the company in a research report on Tuesday, February 24th. Two research analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, Highwoods Properties has an average rating of "Hold" and a consensus price target of $27.33.

Highwoods Properties Stock Up 1.1%

Highwoods Properties stock opened at $26.39 on Tuesday. The company has a 50-day simple moving average of $23.77 and a 200-day simple moving average of $24.82. The firm has a market capitalization of $2.91 billion, a P/E ratio of 31.41 and a beta of 1.09. The company has a debt-to-equity ratio of 1.46, a quick ratio of 1.50 and a current ratio of 1.50. Highwoods Properties, Inc. has a one year low of $20.45 and a one year high of $32.76.

Highwoods Properties (NYSE:HIW - Get Free Report) last announced its earnings results on Tuesday, April 28th. The real estate investment trust reported $0.29 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.16 by $0.13. The firm had revenue of $214.03 million during the quarter, compared to analyst estimates of $209.06 million. Highwoods Properties had a net margin of 11.64% and a return on equity of 3.97%. Highwoods Properties's revenue was up 6.8% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.83 EPS. Highwoods Properties has set its FY 2026 guidance at 3.400-3.68 EPS. As a group, equities analysts expect that Highwoods Properties, Inc. will post 3.53 earnings per share for the current year.

Highwoods Properties Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 9th. Investors of record on Monday, May 18th will be given a $0.50 dividend. This represents a $2.00 dividend on an annualized basis and a yield of 7.6%. The ex-dividend date is Monday, May 18th. Highwoods Properties's dividend payout ratio is currently 238.10%.

Highwoods Properties declared that its Board of Directors has initiated a share buyback plan on Wednesday, April 22nd that authorizes the company to repurchase $250.00 million in shares. This repurchase authorization authorizes the real estate investment trust to reacquire up to 9.5% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's leadership believes its stock is undervalued.

Highwoods Properties Company Profile

Highwoods Properties, Inc is a publicly traded real estate investment trust (REIT) that acquires, develops, leases and manages office properties. The company's portfolio is primarily focused on Class A office space, with an emphasis on high-quality buildings in key urban and suburban submarkets. Highwoods seeks to generate long-term, recurring revenues through a mix of in-place lease renewals, strategic dispositions and build-to-suit developments. Its asset management platform drives operational efficiencies and tenant service initiatives across its holdings.

Founded in 1970 and headquartered in Raleigh, North Carolina, Highwoods Properties has expanded its presence to eight major metropolitan regions across the Southeastern United States and Texas.

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