Pershing Square (NYSE:PS) Stock Jumps 6.3% - Still a Buy?

Key Points

• Pershing Square shares jumped 6.3% to $58.33, despite trading volume falling 77% below its average. The stock has a $23.78 billion market capitalization and a P/E ratio of 424.64.
• Analyst sentiment remains cautious: the consensus rating is “Reduce”, with one Buy, nine Hold, and two Sell ratings. The average price target is $42.56, well below the current share price.
• Pershing Square reduced its quarterly dividend to $0.103 per share from $0.122, implying an annualized dividend of $0.41 and a 0.7% yield; its payout ratio stands at 350%.

Pershing Square Inc. (NYSE:PS - Get Free Report) was up 6.3% on Tuesday. The company traded as high as $58.80 and last traded at $58.33. 97,410 shares changed hands during trading, a decline of 77% from the average session volume of 422,512 shares. The stock had previously closed at $54.87.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on the company. Wall Street Zen raised Pershing Square from a "sell" rating to a "hold" rating in a research note on Saturday. Wells Fargo & Company began coverage on shares of Pershing Square in a research note on Thursday. They set an "underweight" rating and a $41.00 target price on the stock. JonesTrading downgraded shares of Pershing Square from a "buy" rating to a "hold" rating in a research note on Tuesday, September 29th. Tigress Financial lifted their price objective on Pershing Square from $39.00 to $41.00 and gave the company a "neutral" rating in a research report on Thursday, September 3rd. Finally, Citigroup lowered Pershing Square from a "buy" rating to a "neutral" rating and set a $45.00 target price for the company. in a research report on Wednesday, August 19th. One analyst has rated the stock with a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, Pershing Square presently has an average rating of "Reduce" and an average price target of $42.56.

Pershing Square Stock Performance

The company has a 50 day moving average of $42.24. The company has a market cap of $23.78 billion and a P/E ratio of 424.64.

Pershing Square (NYSE:PS - Get Free Report) last announced its quarterly earnings results on Wednesday, August 12th. The company reported $0.14 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.12 by $0.02. The firm had revenue of $68.03 million during the quarter. As a group, sell-side analysts predict that Pershing Square Inc. will post 0.56 earnings per share for the current fiscal year.

Pershing Square Cuts Dividend

The business also recently declared 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. This represents a $0.41 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Friday, October 9th. This is a drop from Pershing Square's previous quarterly dividend of $0.1220. Pershing Square's payout ratio is 350.00%.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the company. Integrated Wealth Concepts LLC purchased a new position in shares of Pershing Square in the second quarter worth approximately $132,000. Ancora Advisors LLC purchased a new stake in shares of Pershing Square during the second quarter worth about $302,000. Wedbush Securities Inc. purchased a new position in shares of Pershing Square in the second quarter worth $529,000. Hsbc Holdings PLC bought a new stake in shares of Pershing Square in the second quarter worth about $775,000. Finally, Readystate Asset Management LP bought a new position in shares of Pershing Square during the 2nd quarter valued at approximately $822,000.

Pershing Square Company Profile

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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