Innovative Industrial Properties (NYSE:IIPR) Stock Price Down 9.1% - Time to Sell?

Key Points

• Innovative Industrial Properties (IIPR) experienced a significant decline in share price, dropping 9.1% on one trading day, closing at $46.91 after reaching a low of $46.26.
• Analysts have adjusted their price targets for IIPR, with Piper Sandler lowering its target from $55.00 to $45.00 and issuing an "underweight" rating.
• The company announced a quarterly dividend of $1.90 per share, reflecting a 16.5% yield, despite a high dividend payout ratio of 146.15%.

Innovative Industrial Properties, Inc. (NYSE:IIPR - Get Free Report)'s share price fell 9.1% on Thursday . The company traded as low as $46.26 and last traded at $46.91. 364,446 shares changed hands during mid-day trading, an increase of 16% from the average session volume of 313,987 shares. The stock had previously closed at $51.62.

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the stock. Wolfe Research downgraded shares of Innovative Industrial Properties from an "outperform" rating to a "peer perform" rating in a research note on Wednesday, July 2nd. Piper Sandler decreased their target price on shares of Innovative Industrial Properties from $55.00 to $45.00 and set an "underweight" rating on the stock in a report on Tuesday, April 15th. Two equities research analysts have rated the stock with a sell rating, five have assigned a hold rating, one has issued a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat.com, Innovative Industrial Properties currently has an average rating of "Hold" and a consensus price target of $78.67.

Innovative Industrial Properties Trading Up 6.1%

The company has a debt-to-equity ratio of 0.16, a quick ratio of 10.30 and a current ratio of 10.30. The company has a market capitalization of $1.36 billion, a price-to-earnings ratio of 10.53 and a beta of 1.65. The business's 50-day simple moving average is $54.78 and its 200-day simple moving average is $59.34.

Innovative Industrial Properties (NYSE:IIPR - Get Free Report) last posted its earnings results on Wednesday, August 6th. The company reported $1.71 earnings per share for the quarter, topping analysts' consensus estimates of $1.68 by $0.03. Innovative Industrial Properties had a return on equity of 7.26% and a net margin of 47.71%. The company had revenue of $62.89 million during the quarter, compared to the consensus estimate of $64.36 million. During the same quarter last year, the firm earned $2.06 earnings per share. The company's revenue was down 21.2% on a year-over-year basis. On average, research analysts expect that Innovative Industrial Properties, Inc. will post 8.28 earnings per share for the current fiscal year.

Innovative Industrial Properties Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, July 15th. Investors of record on Monday, June 30th were issued a dividend of $1.90 per share. The ex-dividend date of this dividend was Monday, June 30th. This represents a $7.60 dividend on an annualized basis and a yield of 15.6%. Innovative Industrial Properties's dividend payout ratio is 164.50%.

Institutional Trading of Innovative Industrial Properties

Institutional investors and hedge funds have recently modified their holdings of the business. Summit Investment Advisors Inc. grew its position in shares of Innovative Industrial Properties by 5.7% during the 4th quarter. Summit Investment Advisors Inc. now owns 2,948 shares of the company's stock valued at $196,000 after acquiring an additional 160 shares during the period. Nissay Asset Management Corp Japan ADV grew its stake in shares of Innovative Industrial Properties by 4.0% during the fourth quarter. Nissay Asset Management Corp Japan ADV now owns 4,228 shares of the company's stock worth $288,000 after purchasing an additional 164 shares in the last quarter. AdvisorNet Financial Inc lifted its position in Innovative Industrial Properties by 50.3% in the second quarter. AdvisorNet Financial Inc now owns 559 shares of the company's stock valued at $31,000 after acquiring an additional 187 shares during the last quarter. Pinebridge Investments L.P. raised its holdings in shares of Innovative Industrial Properties by 4.3% in the fourth quarter. Pinebridge Investments L.P. now owns 4,677 shares of the company's stock valued at $312,000 after buying an additional 193 shares during the last quarter. Finally, Bank of Montreal Can raised its holdings in Innovative Industrial Properties by 4.6% during the second quarter. Bank of Montreal Can now owns 5,259 shares of the company's stock worth $290,000 after purchasing an additional 229 shares in the last quarter. Hedge funds and other institutional investors own 70.58% of the company's stock.

About Innovative Industrial Properties

Innovative Industrial Properties, Inc is a self-advised Maryland corporation focused on the acquisition, ownership and management of specialized properties leased to experienced, state-licensed operators for their regulated cannabis facilities. Innovative Industrial Properties, Inc has elected to be taxed as a real estate investment trust, commencing with the year ended December 31, 2017.