Marcus & Millichap (NYSE:MMI) Stock Price Down 12% on Disappointing Earnings

Key Points

• Marcus & Millichap's stock price fell by 12% following disappointing earnings, reporting an earnings per share (EPS) of ($0.28), which was significantly below the consensus estimate of ($0.04).
• The company declared a dividend of $0.25 per share with a yield of 160.0%, despite a negative payout ratio of -294.12%.
• Despite the recent downturn, institutional investors continue to hold a strong position, with 62.78% of the stock owned by these entities.

Shares of Marcus & Millichap, Inc. (NYSE:MMI - Get Free Report) fell 12% on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $28.56 and last traded at $28.37. 63,862 shares were traded during mid-day trading, a decline of 48% from the average session volume of 122,532 shares. The stock had previously closed at $32.23.

The real estate investment trust reported ($0.28) earnings per share for the quarter, missing the consensus estimate of ($0.04) by ($0.24). Marcus & Millichap had a negative return on equity of 1.99% and a negative net margin of 1.69%. The company had revenue of $172.28 million for the quarter, compared to analyst estimates of $172.60 million.

Marcus & Millichap Announces Dividend

The business also recently declared a half year 25 dividend, which will be paid on Monday, October 6th. Investors of record on Monday, September 15th will be issued a dividend of $0.25 per share. The ex-dividend date of this dividend is Monday, September 15th. This represents a dividend yield of 160.0%. Marcus & Millichap's dividend payout ratio (DPR) is currently -161.29%.

Analysts Set New Price Targets

Several brokerages recently weighed in on MMI. Wall Street Zen downgraded Marcus & Millichap from a "hold" rating to a "sell" rating in a report on Saturday. Citizens Jmp initiated coverage on Marcus & Millichap in a research report on Monday, July 21st. They issued a "market perform" rating for the company. Finally, JMP Securities initiated coverage on Marcus & Millichap in a research report on Monday, July 21st. They issued a "market perform" rating for the company.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Reinhart Partners LLC. increased its position in Marcus & Millichap by 2.4% during the 2nd quarter. Reinhart Partners LLC. now owns 2,214,779 shares of the real estate investment trust's stock worth $68,016,000 after purchasing an additional 51,844 shares in the last quarter. Tributary Capital Management LLC increased its position in Marcus & Millichap by 10.2% during the 2nd quarter. Tributary Capital Management LLC now owns 695,817 shares of the real estate investment trust's stock worth $21,369,000 after purchasing an additional 64,392 shares in the last quarter. Geode Capital Management LLC increased its position in Marcus & Millichap by 1.9% during the 2nd quarter. Geode Capital Management LLC now owns 625,781 shares of the real estate investment trust's stock worth $19,219,000 after purchasing an additional 11,819 shares in the last quarter. Pzena Investment Management LLC grew its holdings in Marcus & Millichap by 6.6% in the 2nd quarter. Pzena Investment Management LLC now owns 614,410 shares of the real estate investment trust's stock valued at $18,869,000 after buying an additional 38,159 shares during the period. Finally, Charles Schwab Investment Management Inc. grew its holdings in Marcus & Millichap by 0.9% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 407,137 shares of the real estate investment trust's stock valued at $14,026,000 after buying an additional 3,577 shares during the period. Hedge funds and other institutional investors own 62.78% of the company's stock.

Marcus & Millichap Stock Performance

The company has a market cap of $1.14 billion, a PE ratio of -94.09 and a beta of 1.27. The firm has a fifty day simple moving average of $30.94 and a 200 day simple moving average of $32.72.

Marcus & Millichap Company Profile

Marcus & Millichap, Inc engages in the provision of investment real estate brokerage services. It specializes in commercial real estate investment sales, property financing, research, and advisory services. The company was founded by George M. Marcus and William A. Millichap in 1971 and is headquartered in Calabasas, CA.