Pershing Square (NYSE:PS) Stock Price Down 4.7% - Time to Sell?

Key Points

• Pershing Square shares fell 4.7% to $47.47 in Monday trading, while volume was 53% below the average daily level.
• Analyst sentiment is mostly cautious: the stock carries a consensus “Hold” rating and an average price target of $41.33, below its current price.
• The company recently beat quarterly EPS estimates, reporting $0.14 versus $0.12 expected, and pays a $0.49 annualized dividend with a 1.0% yield; however, its payout ratio is elevated at 350%.

Pershing Square Inc. (NYSE:PS - Get Free Report)'s stock price was down 4.7% during trading on Monday . The stock traded as low as $47.39 and last traded at $47.47. 187,974 shares traded hands during mid-day trading, a decline of 53% from the average daily volume of 401,388 shares. The stock had previously closed at $49.83.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the stock. JonesTrading lifted their price objective on shares of Pershing Square from $39.00 to $42.00 and gave the company a "buy" rating in a report on Monday, August 24th. Jefferies Financial Group assumed coverage on Pershing Square in a research note on Monday, May 25th. They issued a "hold" rating and a $40.00 target price on the stock. Bank of America began coverage on shares of Pershing Square in a research report on Tuesday, May 26th. They set a "neutral" rating and a $42.00 price target for the company. 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. Finally, Wall Street Zen lowered shares of Pershing Square from a "hold" rating to a "sell" rating in a report on Sunday, June 7th. Two investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $41.33.

Pershing Square Price Performance

The stock has a market capitalization of $19.52 billion and a price-to-earnings ratio of 348.50. The firm's fifty day moving average price is $38.15.

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

Pershing Square Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, July 21st. Investors of record on Monday, July 13th were paid a $0.122 dividend. This represents a $0.49 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend was Monday, July 13th. Pershing Square's dividend payout ratio is currently 350.00%.

Institutional Investors Weigh In On Pershing Square

Large investors have recently modified their holdings of the business. Integrated Wealth Concepts LLC acquired a new position in Pershing Square during the second quarter worth about $132,000. Ancora Advisors LLC purchased a new stake in shares of Pershing Square in the second quarter valued at approximately $302,000. Wedbush Securities Inc. acquired a new stake in shares of Pershing Square in the second quarter valued at approximately $529,000. Hsbc Holdings PLC purchased a new position in Pershing Square during the second quarter worth approximately $775,000. Finally, Readystate Asset Management LP purchased a new stake in Pershing Square in the 2nd quarter valued at $822,000.

About Pershing Square

Pershing Square USA, Ltd. is a closed-end investment company listed on the New York Stock Exchange under the symbol PS. Rather than operating a conventional commercial business, the company invests shareholder capital in a concentrated portfolio of publicly traded companies.

The fund seeks long-term capital appreciation by investing primarily in large, established North American businesses. Its investment approach emphasizes fundamental research, a limited number of high-conviction holdings, and active engagement with portfolio companies when appropriate.

Pershing Square USA is managed by Pershing Square Capital Management, an investment management firm founded by William A.

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