Hudson Pacific Properties (NYSE:HPP) Shares Up 8.5% on Better-Than-Expected Earnings

Key Points

• Hudson Pacific Properties' stock rose 8.5% after reporting quarterly earnings of $0.04 per share, beating the consensus estimate of $0.03 by $0.01.
• Despite the positive earnings, the company's revenue of $190 million fell below the consensus forecast of $196.27 million.
• Several analysts have downgraded their price targets for Hudson Pacific Properties, with a current average price target of $3.22, indicating a generally cautious outlook.

Hudson Pacific Properties, Inc. (NYSE:HPP - Get Free Report)'s stock price was up 8.5% during trading on Wednesday following a better than expected earnings announcement. The company traded as high as $2.79 and last traded at $2.73. Approximately 2,804,883 shares were traded during trading, a decline of 43% from the average daily volume of 4,916,340 shares. The stock had previously closed at $2.52.

The real estate investment trust reported $0.04 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.03 by $0.01. Hudson Pacific Properties had a negative return on equity of 14.12% and a negative net margin of 47.56%. The business had revenue of $190.00 million for the quarter, compared to the consensus estimate of $196.27 million.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on HPP shares. Odeon Capital Group started coverage on Hudson Pacific Properties in a report on Monday, June 16th. They set a "buy" rating and a $5.00 price target on the stock. The Goldman Sachs Group reduced their price target on Hudson Pacific Properties from $3.40 to $2.30 and set a "neutral" rating for the company in a research report on Tuesday, April 22nd. BTIG Research reduced their price target on Hudson Pacific Properties from $8.00 to $4.75 and set a "buy" rating for the company in a research report on Wednesday, June 25th. Wells Fargo & Company cut their price objective on Hudson Pacific Properties from $4.00 to $3.40 and set an "overweight" rating for the company in a research report on Monday, May 19th. Finally, BMO Capital Markets lowered their price target on Hudson Pacific Properties from $4.00 to $3.50 and set an "outperform" rating on the stock in a research note on Friday, June 13th. Two investment analysts have rated the stock with a sell rating, seven have issued a hold rating and four have issued a buy rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $3.22.

Insider Transactions at Hudson Pacific Properties

In other Hudson Pacific Properties news, CEO Victor J. Coleman acquired 224,215 shares of the company's stock in a transaction that occurred on Thursday, June 12th. The shares were acquired at an average price of $2.23 per share, with a total value of $499,999.45. Following the purchase, the chief executive officer owned 711,666 shares of the company's stock, valued at $1,587,015.18. This represents a 46.00% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Barry A. Sholem acquired 224,215 shares of the company's stock in a transaction that occurred on Thursday, June 12th. The shares were acquired at an average cost of $2.23 per share, for a total transaction of $499,999.45. Following the purchase, the director directly owned 400,743 shares in the company, valued at $893,656.89. This trade represents a 127.01% increase in their position. The disclosure for this purchase can be found here. In the last three months, insiders purchased 1,139,007 shares of company stock worth $2,539,986. Corporate insiders own 3.92% of the company's stock.

Institutional Trading of Hudson Pacific Properties

Several hedge funds and other institutional investors have recently modified their holdings of HPP. GeoWealth Management LLC acquired a new stake in shares of Hudson Pacific Properties in the 4th quarter valued at about $27,000. Abel Hall LLC acquired a new stake in shares of Hudson Pacific Properties in the 2nd quarter valued at about $28,000. US Bancorp DE raised its stake in shares of Hudson Pacific Properties by 1,053.7% in the 1st quarter. US Bancorp DE now owns 9,772 shares of the real estate investment trust's stock valued at $29,000 after purchasing an additional 8,925 shares during the period. Envestnet Portfolio Solutions Inc. bought a new position in shares of Hudson Pacific Properties in the 2nd quarter valued at about $29,000. Finally, Hutchens & Kramer Investment Management Group LLC bought a new position in shares of Hudson Pacific Properties in the 2nd quarter valued at about $33,000. Institutional investors and hedge funds own 97.58% of the company's stock.

Hudson Pacific Properties Price Performance

The company has a market cap of $1.03 billion, a P/E ratio of -1.00 and a beta of 1.59. The company has a fifty day moving average price of $2.55 and a two-hundred day moving average price of $2.62. The company has a debt-to-equity ratio of 1.62, a quick ratio of 1.79 and a current ratio of 1.79.

Hudson Pacific Properties Company Profile

Hudson Pacific Properties NYSE: HPP is a real estate investment trust serving dynamic tech and media tenants in global epicenters for these synergistic, converging and secular growth industries. Hudson Pacific's unique and high-barrier tech and media focus leverages a full-service, end-to-end value creation platform forged through deep strategic relationships and niche expertise across identifying, acquiring, transforming and developing properties into world-class amenitized, collaborative and sustainable office and studio space.

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