Simon Property Group, Inc. $SPG is Smead Capital Management Inc.'s Largest Position

Key Points

• Smead Capital Management trimmed its Simon Property Group stake by 6.5% in the fourth quarter, but SPG remains its largest position, representing 6.9% of the portfolio.
• Analyst sentiment is mixed but generally cautious: the stock has an average rating of “Hold” with an average target price of $205.07, even as several firms recently raised price targets.
• Simon Property Group reported better-than-expected quarterly earnings and revenue, raised its dividend to $2.25 per share, and authorized a $2 billion stock buyback, signaling confidence in its outlook.

Smead Capital Management Inc. trimmed its stake in Simon Property Group, Inc. (NYSE:SPG - Free Report) by 6.5% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 1,791,330 shares of the real estate investment trust's stock after selling 124,175 shares during the quarter. Simon Property Group accounts for 6.9% of Smead Capital Management Inc.'s portfolio, making the stock its largest position. Smead Capital Management Inc. owned about 0.55% of Simon Property Group worth $331,593,000 as of its most recent SEC filing.

Other hedge funds have also made changes to their positions in the company. Stance Capital LLC purchased a new stake in shares of Simon Property Group in the third quarter worth approximately $26,000. Atlantic Union Bankshares Corp lifted its position in shares of Simon Property Group by 143.0% in the third quarter. Atlantic Union Bankshares Corp now owns 209 shares of the real estate investment trust's stock worth $39,000 after purchasing an additional 123 shares in the last quarter. Tompkins Financial Corp purchased a new stake in shares of Simon Property Group in the fourth quarter worth approximately $42,000. Cullen Frost Bankers Inc. lifted its position in shares of Simon Property Group by 79.3% in the fourth quarter. Cullen Frost Bankers Inc. now owns 251 shares of the real estate investment trust's stock worth $46,000 after purchasing an additional 111 shares in the last quarter. Finally, Camelot Portfolios LLC purchased a new stake in shares of Simon Property Group in the fourth quarter worth approximately $53,000. 93.01% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of research firms have recently issued reports on SPG. JPMorgan Chase & Co. increased their price target on shares of Simon Property Group from $198.00 to $210.00 and gave the stock a "neutral" rating in a research report on Friday, February 6th. Stifel Nicolaus increased their price target on shares of Simon Property Group from $185.00 to $194.00 and gave the stock a "hold" rating in a research report on Tuesday, May 12th. Weiss Ratings raised shares of Simon Property Group from a "buy (b+)" rating to a "buy (a-)" rating in a research report on Monday, May 18th. Truist Financial increased their price target on shares of Simon Property Group from $181.00 to $196.00 and gave the stock a "hold" rating in a research report on Monday, March 2nd. Finally, Barclays increased their price target on shares of Simon Property Group from $201.00 to $212.00 and gave the stock an "equal weight" rating in a research report on Tuesday. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating and ten have given a Hold rating to the company's stock. According to data from MarketBeat.com, Simon Property Group presently has an average rating of "Hold" and an average target price of $205.07.

Simon Property Group Stock Performance

Shares of SPG opened at $204.50 on Friday. The company's fifty day moving average is $196.17 and its 200-day moving average is $191.00. Simon Property Group, Inc. has a 12 month low of $155.44 and a 12 month high of $208.28. The firm has a market cap of $66.45 billion, a price-to-earnings ratio of 14.21, a price-to-earnings-growth ratio of 3.70 and a beta of 1.33. The company has a quick ratio of 0.84, a current ratio of 0.84 and a debt-to-equity ratio of 4.68.

Simon Property Group (NYSE:SPG - Get Free Report) last announced its quarterly earnings results on Monday, May 11th. The real estate investment trust reported $1.48 EPS for the quarter, topping the consensus estimate 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 for the quarter, compared to analyst estimates of $1.54 billion. During the same quarter in the prior year, the business posted $2.95 EPS. Simon Property Group's quarterly revenue 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. Equities analysts expect that Simon Property Group, Inc. will post 13.2 EPS for the current fiscal year.

Simon Property Group declared that its Board of Directors has approved a stock buyback program on Thursday, February 5th that allows the company to buyback $2.00 billion in outstanding shares. This buyback authorization allows the real estate investment trust to reacquire up to 3.1% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

Simon Property Group Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 9th will be paid a dividend of $2.25 per share. This is a positive change from Simon Property Group's previous quarterly dividend of $2.20. The ex-dividend date is Tuesday, June 9th. This represents a $9.00 annualized dividend and a dividend yield of 4.4%. Simon Property Group's dividend payout ratio (DPR) is currently 61.15%.

Simon Property Group Company 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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