Hsbc Holdings PLC Decreases Stake in CubeSmart $CUBE

Key Points

• HSBC reduced its CubeSmart stake by 31.4% in the second quarter, selling 391,687 shares and retaining 855,192 shares valued at approximately $34.1 million. Institutional investors collectively own 97.61% of the company.
• Analyst sentiment is mixed, with six Buy ratings and eight Hold ratings, resulting in a consensus “Hold” rating and an average price target of $43.45 versus the stock’s reported $39.51 price.
• CubeSmart reported quarterly revenue of $286.5 million, exceeding estimates, but adjusted earnings of $0.39 per share missed expectations. The company declared a quarterly dividend of $0.53, representing a 5.4% annualized yield.

Hsbc Holdings PLC lowered its stake in CubeSmart (NYSE:CUBE - Free Report) by 31.4% in the 2nd quarter, according to its most recent disclosure with the SEC. The fund owned 855,192 shares of the real estate investment trust's stock after selling 391,687 shares during the quarter. Hsbc Holdings PLC owned 0.38% of CubeSmart worth $34,085,000 at the end of the most recent quarter.

A number of other institutional investors have also recently made changes to their positions in the stock. BlackRock Inc. bought a new position in shares of CubeSmart in the second quarter worth approximately $1,349,164,000. Norges Bank bought a new stake in CubeSmart during the 4th quarter valued at $395,968,000. Canada Pension Plan Investment Board bought a new stake in CubeSmart during the 2nd quarter valued at $288,512,000. Bank of New York Mellon Corp purchased a new stake in CubeSmart during the 2nd quarter valued at $74,199,000. Finally, Millennium Management LLC boosted its position in CubeSmart by 201.5% during the 4th quarter. Millennium Management LLC now owns 2,739,600 shares of the real estate investment trust's stock valued at $98,763,000 after buying an additional 1,830,993 shares during the period. Hedge funds and other institutional investors own 97.61% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the stock. Raymond James Financial started coverage on shares of CubeSmart in a research report on Wednesday, July 15th. They issued an "outperform" rating and a $44.00 price objective on the stock. KeyCorp reiterated a "sector weight" rating on shares of CubeSmart in a report on Tuesday, August 4th. Royal Bank Of Canada reiterated an "outperform" rating and set a $47.00 target price on shares of CubeSmart in a report on Tuesday, August 4th. Mizuho cut their target price on CubeSmart from $42.00 to $41.00 and set a "neutral" rating on the stock in a research note on Wednesday, September 2nd. Finally, UBS Group boosted their price target on CubeSmart from $41.00 to $43.00 and gave the company a "neutral" rating in a report on Friday, July 10th. Six investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $43.45.

CubeSmart Price Performance

Shares of NYSE CUBE opened at $39.51 on Tuesday. CubeSmart has a 1 year low of $35.09 and a 1 year high of $43.26. The company has a debt-to-equity ratio of 1.34, a current ratio of 0.07 and a quick ratio of 0.07. The company's 50-day moving average is $40.93 and its 200 day moving average is $39.98. The stock has a market capitalization of $8.90 billion, a P/E ratio of 27.25, a P/E/G ratio of 6.50 and a beta of 1.05.

CubeSmart (NYSE:CUBE - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The real estate investment trust reported $0.39 EPS for the quarter, missing the consensus estimate of $0.64 by ($0.25). The company had revenue of $286.49 million during the quarter, compared to analysts' expectations of $281.12 million. CubeSmart had a return on equity of 12.35% and a net margin of 29.41%.The business's quarterly revenue was up 1.5% on a year-over-year basis. During the same quarter last year, the business earned $0.65 earnings per share. CubeSmart has set its Q3 2026 guidance at 0.640-0.660 EPS and its FY 2026 guidance at 2.540-2.600 EPS. On average, sell-side analysts expect that CubeSmart will post 2.57 earnings per share for the current year.

CubeSmart Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Thursday, October 1st will be paid a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a dividend yield of 5.4%. The ex-dividend date is Thursday, October 1st. CubeSmart's dividend payout ratio (DPR) is presently 146.21%.

About CubeSmart

CubeSmart NYSE: CUBE is a publicly traded real estate investment trust (REIT) specializing in the ownership, operation and management of self-storage facilities across the United States. The company's portfolio comprises properties in primary and secondary markets, catering to both individual and business customers seeking flexible, short-term and long-term storage solutions. CubeSmart's facilities feature a range of unit sizes, climate-controlled options and advanced security features, supported by on-site managers and centralized customer service operations.

In addition to traditional self-storage units, CubeSmart offers specialty services such as vehicle and boat storage, retail sales of packing and moving supplies, and tenant insurance programs.

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