Hudson Pacific Properties (NYSE:HPP) Shares Gap Down - Here's What Happened

Key Points

• Hudson Pacific Properties shares fell sharply, opening at $9.85 versus a prior close of $10.30 and last trading at $9.70.
• Analyst sentiment is mixed but leans neutral: the stock carries an average “Hold” rating and a consensus price target of $15.27, while Piper Sandler downgraded it to neutral and Wall Street Zen lowered its rating to sell.
• The REIT reported a significant quarterly loss, with EPS of -$1.62 versus an expected -$0.72, despite revenue of $188.3 million exceeding forecasts. Institutional investors own 97.58% of the shares, and a company director recently purchased 25,000 shares.

Hudson Pacific Properties, Inc. (NYSE:HPP - Get Free Report) gapped down prior to trading on Monday. The stock had previously closed at $10.30, but opened at $9.85. Hudson Pacific Properties shares last traded at $9.70, with a volume of 58,431 shares traded.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on the stock. Wall Street Zen downgraded shares of Hudson Pacific Properties from a "hold" rating to a "sell" rating in a research report on Sunday, September 20th. Mizuho increased their price target on Hudson Pacific Properties from $15.00 to $17.00 and gave the company a "neutral" rating in a report on Tuesday, July 21st. Piper Sandler downgraded Hudson Pacific Properties from an "overweight" rating to a "neutral" rating and dropped their price target for the stock from $15.00 to $13.00 in a research note on Monday. The Goldman Sachs Group reaffirmed a "neutral" rating and issued a $16.00 price objective on shares of Hudson Pacific Properties in a report on Monday, August 10th. Finally, Citigroup reiterated a "neutral" rating and set a $15.00 price objective (up from $13.00) on shares of Hudson Pacific Properties in a research report on Thursday, August 13th. Three equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Hudson Pacific Properties has an average rating of "Hold" and an average price target of $15.27.

Hudson Pacific Properties Price Performance

The company has a market cap of $535.92 million, a P/E ratio of -1.12, a PEG ratio of 0.86 and a beta of 1.96. The firm's 50-day moving average is $12.52 and its two-hundred day moving average is $12.30. The company has a debt-to-equity ratio of 1.33, a current ratio of 1.11 and a quick ratio of 1.11.

Hudson Pacific Properties (NYSE:HPP - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The real estate investment trust reported ($1.62) earnings per share for the quarter, missing analysts' consensus estimates of ($0.72) by ($0.90). Hudson Pacific Properties had a negative return on equity of 20.76% and a negative net margin of 70.04%. The firm had revenue of $188.30 million during the quarter, compared to analysts' expectations of $181.80 million. Hudson Pacific Properties has set its FY 2026 guidance at 1.120-1.200 EPS. Analysts anticipate that Hudson Pacific Properties, Inc. will post 1.15 earnings per share for the current year.

Insider Activity at Hudson Pacific Properties

In related news, Director Jon Bortz purchased 25,000 shares of the firm's stock in a transaction on Tuesday, August 11th. The stock was bought at an average cost of $13.40 per share, with a total value of $335,000.00. Following the completion of the acquisition, the director owned 35,394 shares of the company's stock, valued at $474,279.60. The trade was a 240.52% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 2.47% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new position in shares of Hudson Pacific Properties in the second quarter valued at approximately $102,830,000. Valueworks LLC acquired a new stake in Hudson Pacific Properties during the 2nd quarter worth approximately $25,667,000. Wellington Management Group LLP purchased a new position in Hudson Pacific Properties in the 2nd quarter valued at approximately $23,325,000. Purpose Unlimited Inc. purchased a new position in Hudson Pacific Properties in the 4th quarter valued at approximately $4,739,000. Finally, Bank of America Corp DE purchased a new position in Hudson Pacific Properties in the 2nd quarter valued at approximately $5,138,000. Hedge funds and other institutional investors own 97.58% of the company's stock.

Hudson Pacific Properties Company Profile

Hudson Pacific Properties, Inc is a real estate investment trust (REIT) that owns, operates and develops office and studio properties. The company focuses on high-quality, well-located properties serving media, entertainment, technology and other knowledge-based industries.

Its office portfolio includes creative and traditional office buildings, while its studio platform operates soundstages, production facilities and related infrastructure through the Sunset Studios brand. These facilities support film and television production and are designed to accommodate the evolving needs of media and entertainment companies.

Hudson Pacific Properties primarily serves markets along the U.S.

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