Pershing Square (NYSE:PS) Reaches New 1-Year High - Still a Buy?

Key Points

• Pershing Square shares reached a new 52-week high of $60.40 and last traded at $59.74, significantly above the $42.75 50-day moving average.
• Analysts remain cautious despite the rally: the stock has a consensus “Reduce” rating and an average price target of $42.56, well below its current price.
• The company reported quarterly EPS of $0.14, beating estimates of $0.12, but cut its quarterly dividend to $0.103 per share from $0.122, resulting in a 0.7% yield.

Pershing Square Inc. (NYSE:PS - Get Free Report)'s share price hit a new 52-week high during mid-day trading on Wednesday. The company traded as high as $60.40 and last traded at $59.74, with a volume of 344853 shares changing hands. The stock had previously closed at $54.87.

Analysts Set New Price Targets

PS has been the subject of several research analyst reports. Wall Street Zen raised shares of Pershing Square from a "sell" rating to a "hold" rating in a research report on Saturday. Tigress Financial boosted their price target on shares of Pershing Square from $39.00 to $41.00 and gave the company a "neutral" rating in a research report on Thursday, September 3rd. Citigroup downgraded shares of Pershing Square from a "buy" rating to a "neutral" rating and set a $45.00 price target for the company. in a research note on Wednesday, August 19th. Wells Fargo & Company assumed coverage on shares of Pershing Square in a report on Thursday, October 1st. They issued an "underweight" rating and a $41.00 price objective for the company. Finally, Weiss Ratings raised Pershing Square from a "sell (d)" rating to a "sell (d+)" rating in a research report on Tuesday, August 11th. One research analyst has rated the stock with a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, Pershing Square presently has a consensus rating of "Reduce" and an average target price of $42.56.

Pershing Square Price Performance

The firm has a 50-day moving average price of $42.75. The firm has a market capitalization of $23.90 billion and a PE ratio of 426.71.

Pershing Square (NYSE:PS - Get Free Report) last issued its quarterly earnings results on Wednesday, August 12th. The company reported $0.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.12 by $0.02. The business had revenue of $68.03 million for the quarter. On average, sell-side analysts anticipate that Pershing Square Inc. will post 0.56 EPS for the current year.

Pershing Square Cuts Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, October 20th. Stockholders of record on Monday, October 12th will be issued a dividend of $0.1030 per share. The ex-dividend date is Friday, October 9th. This is a negative change from Pershing Square's previous quarterly dividend of $0.1220. This represents a $0.41 annualized dividend and a dividend yield of 0.7%. Pershing Square's dividend payout ratio (DPR) is 350.00%.

Institutional Trading of Pershing Square

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Rivernorth Capital Management LLC bought a new position in Pershing Square during the 2nd quarter valued at approximately $14,787,000. Clal Insurance Enterprises Holdings Ltd bought a new stake in Pershing Square in the second quarter worth $9,858,000. Equitec Proprietary Markets LLC purchased a new stake in shares of Pershing Square in the second quarter worth $3,828,000. NewEdge Advisors LLC purchased a new stake in shares of Pershing Square in the second quarter worth $1,702,000. Finally, Proficio Capital Partners LLC bought a new position in shares of Pershing Square during the second quarter valued at $1,459,000.

About Pershing Square

Pershing Square USA, Ltd. is a closed-end investment company listed on the New York Stock Exchange under the symbol PS. The company is designed to provide investors with long-term capital appreciation through a concentrated portfolio of investments in publicly traded businesses.

The fund is managed by Pershing Square Capital Management, L.P., an investment management firm founded and led by William A. Ackman. Its investment approach generally emphasizes detailed fundamental research, activist engagement when appropriate, and ownership of a limited number of companies that the manager believes have durable business models, strong management teams, and long-term growth potential.

Pershing Square USA primarily focuses on publicly traded companies in the United States and other developed markets, with investment decisions centered on individual business fundamentals rather than broad market exposure.

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