Hsbc Holdings PLC Sells 479,540 Shares of CubeSmart $CUBE

Key Points

• Hsbc Holdings PLC reduced its CubeSmart stake by 27.8% in the first quarter, selling 479,540 shares and leaving it with 1,246,879 shares worth about $45.6 million.
• Wall Street sentiment is cautious but improving: CubeSmart has a consensus “Hold” rating, though Barclays upgraded the stock to overweight and several firms lifted price targets, with an average target of $43.25.
• The company posted solid quarterly results and pays a hefty dividend, beating earnings and revenue estimates last quarter and recently distributing a $0.53 quarterly dividend, which annualizes to a 5.1% yield.

Hsbc Holdings PLC lowered its position in CubeSmart (NYSE:CUBE - Free Report) by 27.8% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 1,246,879 shares of the real estate investment trust's stock after selling 479,540 shares during the quarter. Hsbc Holdings PLC owned approximately 0.55% of CubeSmart worth $45,561,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently modified their holdings of CUBE. Norges Bank acquired a new stake in shares of CubeSmart in the fourth quarter valued at approximately $395,968,000. Geode Capital Management LLC increased its holdings in shares of CubeSmart by 1.1% during the 4th quarter. Geode Capital Management LLC now owns 4,714,128 shares of the real estate investment trust's stock worth $169,975,000 after acquiring an additional 52,207 shares during the last quarter. Alyeska Investment Group L.P. increased its holdings in shares of CubeSmart by 36.4% during the 3rd quarter. Alyeska Investment Group L.P. now owns 4,283,952 shares of the real estate investment trust's stock worth $174,185,000 after acquiring an additional 1,143,464 shares during the last quarter. Cbre Investment Management Listed Real Assets LLC raised its stake in CubeSmart by 3.1% in the 4th quarter. Cbre Investment Management Listed Real Assets LLC now owns 3,469,724 shares of the real estate investment trust's stock valued at $125,084,000 after acquiring an additional 105,105 shares during the period. Finally, Charles Schwab Investment Management Inc. raised its stake in CubeSmart by 5.3% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 3,412,567 shares of the real estate investment trust's stock valued at $123,023,000 after acquiring an additional 171,539 shares during the period. Institutional investors own 97.61% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the stock. Weiss Ratings reaffirmed a "hold (c)" rating on shares of CubeSmart in a research report on Wednesday, July 15th. Barclays upgraded shares of CubeSmart from an "equal weight" rating to an "overweight" rating and raised their target price for the stock from $45.00 to $46.00 in a research note on Friday, July 10th. Evercore set a $47.00 target price on shares of CubeSmart in a report on Monday, July 6th. Wall Street Zen raised shares of CubeSmart from a "sell" rating to a "hold" rating in a report on Saturday, May 2nd. Finally, UBS Group increased their price target on shares of CubeSmart from $41.00 to $43.00 and gave the company a "neutral" rating in a report on Friday, July 10th. Six analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $43.25.

CubeSmart Stock Performance

Shares of NYSE CUBE opened at $41.60 on Tuesday. The company has a debt-to-equity ratio of 1.29, a current ratio of 0.04 and a quick ratio of 0.04. The stock's fifty day moving average price is $40.42 and its two-hundred day moving average price is $39.21. CubeSmart has a one year low of $35.09 and a one year high of $42.90. The firm has a market cap of $9.42 billion, a price-to-earnings ratio of 29.30, a P/E/G ratio of 7.25 and a beta of 1.08.

• CubeSmart NYSE: CUBE Stock is a Smart Pullback Play

CubeSmart (NYSE:CUBE - Get Free Report) last posted its earnings results on Thursday, April 30th. The real estate investment trust reported $0.36 earnings per share for the quarter, topping analysts' consensus estimates of $0.34 by $0.02. The company had revenue of $281.93 million during the quarter, compared to the consensus estimate of $275.25 million. CubeSmart had a return on equity of 11.84% and a net margin of 28.93%.The company's revenue was up 3.3% on a year-over-year basis. During the same quarter last year, the firm earned $0.64 earnings per share. CubeSmart has set its FY 2026 guidance at 2.520-2.600 EPS and its Q2 2026 guidance at 0.620-0.640 EPS. On average, equities analysts forecast that CubeSmart will post 2.57 EPS for the current year.

CubeSmart Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Wednesday, July 1st were paid a $0.53 dividend. The ex-dividend date was Wednesday, July 1st. This represents a $2.12 annualized dividend and a yield of 5.1%. CubeSmart's payout ratio is 149.30%.

CubeSmart Company Profile

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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