Pershing Square (NYSE:PS) Stock Falls 7.1% - Should You Sell?

Key Points

• Pershing Square shares fell 7.1% to $48.26, with trading volume 81% below its average; the article also reports the stock was down 13.6% over a broader period.
• Analyst sentiment is cautious: MarketBeat reports an average “Reduce” rating and an average price target of $44.11, with one Buy, seven Hold, and four Sell ratings.
• The company narrowly missed quarterly EPS estimates, reporting $0.12 versus $0.13 expected, and cut its quarterly dividend from $0.122 to $0.103 per share.

Pershing Square Inc. (NYSE:PS - Get Free Report) traded down 7.1% during trading on Tuesday. The stock traded as low as $48.14 and last traded at $48.26. 77,315 shares changed hands during mid-day trading, a decline of 81% from the average daily volume of 409,561 shares. The stock had previously closed at $51.95.

Analysts Set New Price Targets

Several brokerages have recently weighed in on PS. Wells Fargo & Company decreased their price target on shares of Pershing Square from $41.00 to $40.00 and set an "underweight" rating for the company in a research note on Thursday, October 15th. Tigress Financial boosted their price objective on shares of Pershing Square from $41.00 to $54.00 and gave the stock a "neutral" rating in a research report on Thursday, November 5th. JonesTrading lowered shares of Pershing Square from a "buy" rating to a "hold" rating in a research report on Tuesday, September 29th. UBS Group increased their target price on shares of Pershing Square from $39.00 to $44.00 and gave the stock a "neutral" rating in a report on Friday, October 23rd. Finally, Bank of America downgraded shares of Pershing Square from a "neutral" rating to an "underperform" rating and decreased their target price for the company from $54.00 to $38.00 in a research report on Tuesday, October 13th. One analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and four have issued a Sell rating to the company's stock. According to data from MarketBeat.com, Pershing Square currently has an average rating of "Reduce" and an average price target of $44.11.

Pershing Square Stock Down 13.6%

The company has a market cap of $17.96 billion and a PE ratio of 320.79. The stock's 50 day moving average is $47.39.

Pershing Square (NYSE:PS - Get Free Report) last announced its quarterly earnings data on Monday, November 2nd. The company reported $0.12 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.13 by ($0.01). The firm had revenue of $56.60 million during the quarter. On average, sell-side analysts predict that Pershing Square Inc. will post 0.50 EPS for the current year.

Pershing Square Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, October 20th. Shareholders of record on Monday, October 12th were given a dividend of $0.1030 per share. This represents a $0.41 annualized dividend and a yield of 0.9%. This is a decrease from Pershing Square's previous quarterly dividend of $0.1220. The ex-dividend date of this dividend was Friday, October 9th. Pershing Square's payout ratio is currently 292.86%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Rivernorth Capital Management LLC acquired a new stake in Pershing Square in the 2nd quarter valued at about $14,787,000. Clal Insurance Enterprises Holdings Ltd acquired a new position in Pershing Square during the second quarter worth approximately $9,858,000. Equitec Proprietary Markets LLC acquired a new position in Pershing Square during the second quarter worth approximately $3,828,000. NewEdge Advisors LLC bought a new stake in Pershing Square in the second quarter valued at approximately $1,702,000. Finally, Proficio Capital Partners LLC bought a new stake in Pershing Square in the second quarter valued at approximately $1,459,000.

About Pershing Square

Pershing Square is an investment company associated with Pershing Square Capital Management, an alternative investment manager founded by Bill Ackman in 2004. The firm is based in New York and focuses on investing in a concentrated portfolio of publicly traded companies. Its investment approach combines fundamental research with active engagement with portfolio companies. Pershing Square has also operated investment vehicles that provide investors with exposure to its strategy. Bill Ackman is Pershing Square's founder and chief executive.

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