Principal Financial Group Inc. Reduces Position in Simon Property Group, Inc. $SPG

Key Points

• Principal Financial Group cut its stake in Simon Property Group by 9.2% in the first quarter, though it still held 2.6 million shares valued at about $484.1 million at quarter-end.
• Simon Property Group recently reported better-than-expected earnings and revenue, posting $1.48 EPS on $1.76 billion in revenue, and raised its quarterly dividend to $2.25 per share from $2.20.
• Wall Street sentiment remains cautious: the stock has a consensus Hold rating with an average price target of $213.07, even as some analysts recently lifted targets into the $215–$220 range.

Principal Financial Group Inc. decreased its holdings in shares of Simon Property Group, Inc. (NYSE:SPG - Free Report) by 9.2% during the first quarter, according to the company in its most recent disclosure with the SEC. The fund owned 2,595,216 shares of the real estate investment trust's stock after selling 263,589 shares during the quarter. Principal Financial Group Inc. owned 0.80% of Simon Property Group worth $484,088,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Stance Capital LLC purchased a new position in Simon Property Group during the 3rd quarter valued at $26,000. Wilkerson Advisory Group LLC bought a new stake in Simon Property Group during the 4th quarter valued at about $29,000. SHP Wealth Management bought a new stake in Simon Property Group during the 4th quarter valued at about $34,000. Tompkins Financial Corp purchased a new stake in Simon Property Group in the 4th quarter valued at about $42,000. Finally, MV Capital Management Inc. purchased a new position in shares of Simon Property Group during the fourth quarter worth approximately $46,000. 93.01% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

SPG has been the subject of a number of research reports. Deutsche Bank Aktiengesellschaft lowered Simon Property Group from a "buy" rating to a "hold" rating and set a $220.00 price target for the company. in a report on Thursday, July 9th. Morgan Stanley lifted their price objective on Simon Property Group from $205.00 to $207.00 and gave the company an "equal weight" rating in a report on Tuesday, June 9th. Evercore set a $215.00 price objective on shares of Simon Property Group in a research note on Tuesday, July 7th. Truist Financial increased their target price on shares of Simon Property Group from $196.00 to $215.00 and gave the stock a "hold" rating in a report on Tuesday, June 23rd. Finally, Weiss Ratings downgraded shares of Simon Property Group from a "buy (a-)" rating to a "buy (b)" rating in a research report on Monday, June 29th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and eleven have given a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $213.07.

Simon Property Group Stock Performance

Shares of Simon Property Group stock opened at $219.56 on Tuesday. The firm has a market capitalization of $71.20 billion, a P/E ratio of 15.26, a PEG ratio of 2.83 and a beta of 1.29. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 4.68. The company has a 50 day moving average price of $211.64 and a 200 day moving average price of $199.20. Simon Property Group, Inc. has a 52 week low of $159.33 and a 52 week high of $229.59.

Simon Property Group (NYSE:SPG - Get Free Report) last released its earnings results on Monday, May 11th. The real estate investment trust reported $1.48 EPS for the quarter, topping analysts' consensus estimates of $1.46 by $0.02. Simon Property Group had a net margin of 70.60% and a return on equity of 104.54%. The company had revenue of $1.76 billion during the quarter, compared to analysts' expectations of $1.54 billion. During the same period last year, the business earned $2.95 EPS. Simon Property Group's revenue for the quarter was up 19.3% on a year-over-year basis. Simon Property Group has set its FY 2026 guidance at 13.100-13.250 EPS. Sell-side analysts expect that Simon Property Group, Inc. will post 13.21 EPS for the current year.

Simon Property Group Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 9th were paid a dividend of $2.25 per share. The ex-dividend date was Tuesday, June 9th. This is an increase from Simon Property Group's previous quarterly dividend of $2.20. This represents a $9.00 annualized dividend and a dividend yield of 4.1%. Simon Property Group's payout ratio is presently 62.54%.

Insider Activity

In other news, Director Gary M. Rodkin bought 256 shares of the company's stock in a transaction that occurred on Tuesday, June 30th. The shares were purchased at an average price of $223.34 per share, for a total transaction of $57,175.04. Following the completion of the transaction, the director directly owned 21,016 shares in the company, valued at approximately $4,693,713.44. This represents a 1.23% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Larry C. Glasscock purchased 397 shares of the business's stock in a transaction that occurred on Tuesday, June 30th. The stock was acquired at an average price of $223.38 per share, for a total transaction of $88,681.86. Following the acquisition, the director owned 45,902 shares in the company, valued at $10,253,588.76. This trade represents a 0.87% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders bought 2,387 shares of company stock valued at $533,056. 8.73% of the stock is owned by corporate insiders.

Simon Property Group Profile

Simon Property Group, Inc NYSE: SPG is a publicly traded real estate investment trust (REIT) that owns, develops and manages retail real estate properties. Its core business activities include acquisition, development, leasing and property management of regional malls, outlet centers and mixed‑use retail destinations. The company operates retail brands that include high‑profile regional shopping centers and the Premium Outlets platform, and it provides services such as tenant leasing, marketing, property operations and capital projects to optimize asset performance.

Simon's portfolio spans a broad mix of enclosed malls, open‑air centers, outlet properties and mixed‑use developments, and the company pursues redevelopment and repositioning to adapt properties to changing consumer and retail trends.

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