Gladstone Commercial (NASDAQ:GOOD) Reaches New 52-Week Low - Should You Sell?

Key Points

• Gladstone Commercial's shares have hit a new 52-week low, trading as low as $12.66, prompting analysts to reconsider their ratings.
• The company has been downgraded from a "hold" to a "sell" rating by Wall Street Zen, while analysts maintain an average target price of $15.00 for the stock.
• Gladstone Commercial recently announced a monthly dividend of $0.10, yielding 9.5%, although its dividend payout ratio is notably high at 333.33%.

Shares of Gladstone Commercial Corporation (NASDAQ:GOOD - Get Free Report) hit a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $12.66 and last traded at $12.67, with a volume of 406276 shares. The stock had previously closed at $12.81.

Wall Street Analyst Weigh In

Separately, Wall Street Zen downgraded shares of Gladstone Commercial from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. One analyst has rated the stock with a Strong Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Buy" and an average target price of $15.00.

Gladstone Commercial Price Performance

The company has a market capitalization of $589.90 million, a P/E ratio of 35.19, a P/E/G ratio of 1.43 and a beta of 1.16. The business's fifty day moving average price is $13.24 and its 200-day moving average price is $13.94. The company has a current ratio of 2.91, a quick ratio of 2.91 and a debt-to-equity ratio of 4.50.

Gladstone Commercial (NASDAQ:GOOD - Get Free Report) last issued its earnings results on Wednesday, August 6th. The real estate investment trust reported $0.35 EPS for the quarter, hitting analysts' consensus estimates of $0.35. The company had revenue of $39.53 million for the quarter, compared to analysts' expectations of $38.32 million. Gladstone Commercial had a net margin of 18.67% and a return on equity of 16.37%. As a group, sell-side analysts predict that Gladstone Commercial Corporation will post 1.45 earnings per share for the current fiscal year.

Gladstone Commercial Dividend Announcement

The firm also recently announced a monthly dividend, which was paid on Thursday, July 31st. Investors of record on Monday, July 21st were given a $0.10 dividend. This represents a c) dividend on an annualized basis and a yield of 9.5%. The ex-dividend date was Monday, July 21st. Gladstone Commercial's dividend payout ratio (DPR) is presently 333.33%.

Hedge Funds Weigh In On Gladstone Commercial

Hedge funds have recently modified their holdings of the company. Bank of America Corp DE boosted its holdings in shares of Gladstone Commercial by 33.5% during the fourth quarter. Bank of America Corp DE now owns 53,102 shares of the real estate investment trust's stock worth $862,000 after purchasing an additional 13,316 shares during the period. Deutsche Bank AG boosted its holdings in shares of Gladstone Commercial by 36.6% during the fourth quarter. Deutsche Bank AG now owns 31,137 shares of the real estate investment trust's stock worth $506,000 after purchasing an additional 8,339 shares during the period. Lazard Asset Management LLC purchased a new stake in shares of Gladstone Commercial during the fourth quarter worth about $42,000. Millennium Management LLC boosted its holdings in shares of Gladstone Commercial by 103.1% during the fourth quarter. Millennium Management LLC now owns 40,937 shares of the real estate investment trust's stock worth $665,000 after purchasing an additional 20,776 shares during the period. Finally, ProShare Advisors LLC purchased a new stake in shares of Gladstone Commercial during the fourth quarter worth about $193,000. Hedge funds and other institutional investors own 45.51% of the company's stock.

Gladstone Commercial Company Profile

Gladstone Commercial Corporation is a real estate investment trust focused on acquiring, owning, and operating net leased industrial and office properties across the United States. Including payments through January 2024, Gladstone Commercial has paid 229 consecutive monthly cash distributions on its common stock.

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