Pershing Square (NYSE:PS) Shares Gap Down After Analyst Downgrade

Key Points

• Citigroup downgraded Pershing Square from neutral to sell, setting a $45 price target. Shares opened at $52.98 after closing at $54.44 and last traded at $52.76.
• Analyst sentiment is broadly cautious, with a consensus rating of “Reduce” and an average price target of $42.56; the stock has one Buy, eight Hold, and three Sell ratings.
• Pershing Square cut its quarterly dividend to $0.103 from $0.122, implying an annualized dividend of $0.41 and a 0.8% yield, while its latest quarterly EPS of $0.14 exceeded estimates.

Pershing Square Inc. (NYSE:PS - Get Free Report)'s share price gapped down prior to trading on Friday after Citigroup downgraded the stock from a neutral rating to a sell rating. The stock had previously closed at $54.44, but opened at $52.98. Citigroup now has a $45.00 price target on the stock. Pershing Square shares last traded at $52.76, with a volume of 44,755 shares changing hands.

A number of other brokerages have also recently issued reports on PS. Wall Street Zen upgraded Pershing Square from a "sell" rating to a "hold" rating in a report on Saturday, October 3rd. Royal Bank Of Canada upped their price objective on shares of Pershing Square from $41.00 to $44.00 and gave the stock a "sector perform" rating in a report on Monday. JonesTrading lowered shares of Pershing Square from a "buy" rating to a "hold" rating in a research note on Tuesday, September 29th. Wells Fargo & Company started coverage on shares of Pershing Square in a report on Thursday, October 1st. They set an "underweight" rating and a $41.00 price objective for the company. Finally, Weiss Ratings raised shares of Pershing Square from a "sell (d)" rating to a "sell (d+)" rating in a research report on Tuesday, August 11th. One equities research analyst has rated the stock with a Buy rating, eight have given a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average price target of $42.56.

Institutional Investors Weigh In On Pershing Square

Several large investors have recently made changes to their positions in the business. Integrated Wealth Concepts LLC bought a new position in Pershing Square during the second quarter valued at about $132,000. NewEdge Advisors LLC purchased a new stake in Pershing Square in the second quarter worth $1,702,000. Readystate Asset Management LP bought a new stake in shares of Pershing Square in the second quarter valued at $822,000. Proficio Capital Partners LLC purchased a new position in shares of Pershing Square during the 2nd quarter valued at $1,459,000. Finally, Ancora Advisors LLC purchased a new position in shares of Pershing Square during the 2nd quarter valued at $302,000.

Pershing Square Stock Performance

The company has a 50 day simple moving average of $43.69. The stock has a market cap of $21.10 billion and a P/E ratio of 376.86.

Pershing Square (NYSE:PS - Get Free Report) last released its quarterly earnings data on Wednesday, August 12th. The company reported $0.14 EPS for the quarter, beating the consensus estimate of $0.12 by $0.02. The business had revenue of $68.03 million for the quarter. As a group, sell-side analysts forecast that Pershing Square Inc. will post 0.55 EPS for the current fiscal year.

Pershing Square Cuts Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 20th. Investors of record on Monday, October 12th will be paid a $0.1030 dividend. The ex-dividend date is Friday, October 9th. This represents a $0.41 dividend on an annualized basis and a yield of 0.8%. This is a negative change from Pershing Square's previous quarterly dividend of $0.1220. Pershing Square's dividend payout ratio (DPR) is presently 350.00%.

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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