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.

Marcus & Millichap, Inc. (NYSE:MMI - Get Free Report)'s share price dropped 12% on Thursday following a weaker than expected earnings announcement. The stock traded as low as $28.56 and last traded at $28.37. Approximately 63,862 shares were traded during mid-day trading, a decline of 48% from the average daily volume of 122,532 shares. The stock had previously closed at $32.23.

The real estate investment trust reported ($0.28) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.04) by ($0.24). Marcus & Millichap had a negative return on equity of 1.09% and a negative net margin of 0.95%.

Marcus & Millichap Dividend Announcement

The firm also recently disclosed a half year 25 dividend, which will be paid on Monday, October 6th. Shareholders of record on Monday, September 15th will be paid a dividend of $0.25 per share. This represents a yield of 160.0%. The ex-dividend date is Monday, September 15th. Marcus & Millichap's payout ratio is presently -294.12%.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on MMI. JMP Securities initiated coverage on shares of Marcus & Millichap in a research report on Monday, July 21st. They set a "market perform" rating for the company. Citizens Jmp initiated coverage on shares of Marcus & Millichap in a report on Monday, July 21st. They issued a "market perform" rating for the company.

Institutional Investors Weigh In On Marcus & Millichap

Several hedge funds and other institutional investors have recently bought and sold shares of MMI. American Century Companies Inc. lifted its holdings in Marcus & Millichap by 9.7% in the 4th quarter. American Century Companies Inc. now owns 55,286 shares of the real estate investment trust's stock worth $2,115,000 after purchasing an additional 4,866 shares during the last quarter. KLP Kapitalforvaltning AS acquired a new position in shares of Marcus & Millichap during the fourth quarter worth approximately $172,000. LPL Financial LLC raised its stake in shares of Marcus & Millichap by 17.8% in the fourth quarter. LPL Financial LLC now owns 13,256 shares of the real estate investment trust's stock valued at $507,000 after purchasing an additional 1,999 shares in the last quarter. JPMorgan Chase & Co. raised its stake in shares of Marcus & Millichap by 61.5% in the fourth quarter. JPMorgan Chase & Co. now owns 123,089 shares of the real estate investment trust's stock valued at $4,709,000 after purchasing an additional 46,865 shares in the last quarter. Finally, Norges Bank acquired a new position in shares of Marcus & Millichap in the fourth quarter valued at $2,727,000. 62.78% of the stock is currently owned by institutional investors.

Marcus & Millichap Stock Down 11.1%

The business has a 50-day simple moving average of $30.93 and a two-hundred day simple moving average of $32.95. The stock has a market capitalization of $1.12 billion, a P/E ratio of -169.07 and a beta of 1.27.

About Marcus & Millichap

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.

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