Millrose Properties (NYSE:MRP) Stock Price Down 9.6% on Disappointing Earnings

Key Points

• Shares fell 9.6% after Millrose reported Q results: EPS $0.74 missed the $0.77 consensus and revenue was $194.93 million (up 135.7% year-over-year).
• Millrose raised its quarterly dividend to $0.76 ($3.04 annualized), a 10.8% yield
• Analysts have an average "Buy" rating with a $36.13 consensus target, and insider Director Matthew B. Gorson bought 1,000 shares at $30.66 while several hedge funds made modest position changes.

Millrose Properties, Inc. (NYSE:MRP - Get Free Report)'s stock price fell 9.6% on Wednesday following a weaker than expected earnings announcement. The stock traded as low as $27.44 and last traded at $27.1880. 1,359,090 shares changed hands during trading, an increase of 3% from the average session volume of 1,323,277 shares. The stock had previously closed at $30.09.

The company reported $0.74 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.77 by ($0.03). The business had revenue of $194.93 million during the quarter. Millrose Properties had a return on equity of 6.90% and a net margin of 67.42%.The firm's revenue for the quarter was up 135.7% on a year-over-year basis.

Millrose Properties Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Friday, April 3rd were paid a dividend of $0.76 per share. This represents a $3.04 dividend on an annualized basis and a yield of 10.8%. The ex-dividend date was Thursday, April 2nd. This is a positive change from Millrose Properties's previous quarterly dividend of $0.75. Millrose Properties's dividend payout ratio (DPR) is currently 124.59%.

Analyst Ratings Changes

MRP has been the subject of several recent research reports. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Millrose Properties in a report on Thursday, January 22nd. Wall Street Zen raised shares of Millrose Properties from a "hold" rating to a "buy" rating in a report on Saturday, April 4th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, Millrose Properties has an average rating of "Buy" and a consensus target price of $36.13.

Insider Buying and Selling

In related news, Director Matthew B. Gorson acquired 1,000 shares of Millrose Properties stock in a transaction on Thursday, March 5th. The stock was bought at an average cost of $30.66 per share, for a total transaction of $30,660.00. Following the completion of the transaction, the director owned 25,611 shares of the company's stock, valued at approximately $785,233.26. The trade was a 4.06% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. Insiders own 0.23% of the company's stock.

Hedge Funds Weigh In On Millrose Properties

A number of hedge funds have recently made changes to their positions in MRP. Bessemer Group Inc. increased its position in shares of Millrose Properties by 9.9% during the third quarter. Bessemer Group Inc. now owns 3,506 shares of the company's stock worth $119,000 after purchasing an additional 317 shares in the last quarter. Amalgamated Bank boosted its stake in Millrose Properties by 0.9% during the 3rd quarter. Amalgamated Bank now owns 36,731 shares of the company's stock worth $1,235,000 after purchasing an additional 334 shares during the last quarter. Wealth Enhancement Advisory Services LLC boosted its stake in Millrose Properties by 0.3% during the 3rd quarter. Wealth Enhancement Advisory Services LLC now owns 125,165 shares of the company's stock worth $4,007,000 after purchasing an additional 338 shares during the last quarter. Smartleaf Asset Management LLC grew its holdings in shares of Millrose Properties by 55.8% during the third quarter. Smartleaf Asset Management LLC now owns 997 shares of the company's stock worth $34,000 after buying an additional 357 shares in the last quarter. Finally, HighTower Advisors LLC grew its holdings in shares of Millrose Properties by 3.4% during the fourth quarter. HighTower Advisors LLC now owns 11,206 shares of the company's stock worth $335,000 after buying an additional 371 shares in the last quarter.

Millrose Properties Price Performance

The stock's 50-day moving average price is $29.74 and its 200 day moving average price is $30.50. The company has a quick ratio of 0.35, a current ratio of 0.35 and a debt-to-equity ratio of 0.36. The firm has a market capitalization of $4.67 billion, a price-to-earnings ratio of 11.53 and a beta of 0.59.

About Millrose Properties

Millrose Properties Corp is a publicly traded real estate investment trust that focuses on the acquisition, ownership and development of industrial and logistics properties. The company seeks to capitalize on the growing demand for modern warehouse facilities driven by e-commerce, freight distribution and last-mile delivery requirements. Millrose structures its investments to generate stable, long-term rental income through diversified lease agreements with industrial and logistics operators.

The firm's core activities include sourcing strategically located industrial assets, overseeing property management operations and executing targeted development or renovation projects.

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