Pershing Square (NYSE:PS) Stock Price Down 6.5% - What's Next?

Key Points

• Pershing Square shares fell 6.5% to $40.15 in mid-day trading, with volume 74% below its average. The stock is down 10.5% based on the article’s trading summary.
• Analyst sentiment is largely cautious: the consensus rating is “Hold” from MarketBeat, with a $40.89 average price target. Citigroup downgraded the stock to “Neutral,” while price targets range from $39 to $49.
• The company slightly beat quarterly earnings expectations, reporting $0.14 per share versus the $0.12 consensus, but its $0.49 annualized dividend yields 1.3% and represents a high 342.86% payout ratio.

Pershing Square Inc. (NYSE:PS - Get Free Report) fell 6.5% during mid-day trading on Tuesday . The company traded as low as $40.15 and last traded at $40.15. 90,486 shares changed hands during trading, a decline of 74% from the average daily volume of 349,516 shares. The stock had previously closed at $42.92.

Analyst Ratings Changes

A number of research analysts have weighed in on PS shares. Citigroup cut shares of Pershing Square from a "buy" rating to a "neutral" rating and set a $45.00 target price on the stock. in a research note on Wednesday, August 19th. Jefferies Financial Group started coverage on shares of Pershing Square in a report on Monday, May 25th. They issued a "hold" rating and a $40.00 price target on the stock. Loop Capital assumed coverage on Pershing Square in a report on Tuesday, May 26th. They set a "buy" rating and a $49.00 price objective for the company. Tigress Financial began coverage on Pershing Square in a research note on Monday, July 27th. They issued a "neutral" rating and a $39.00 target price on the stock. Finally, Oppenheimer initiated coverage on Pershing Square in a research report on Tuesday, May 26th. They set a "market perform" rating on the stock. Two equities research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $40.89.

Pershing Square Trading Down 10.5%

The firm has a 50 day moving average price of $36.31. The firm has a market cap of $15.37 billion and a PE ratio of 274.50.

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

Pershing Square Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, July 21st. Investors of record on Monday, July 13th were paid a dividend of $0.122 per share. This represents a $0.49 dividend on an annualized basis and a dividend yield of 1.3%. The ex-dividend date was Monday, July 13th. Pershing Square's payout ratio is presently 342.86%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Ancora Advisors LLC purchased a new stake in shares of Pershing Square in the second quarter worth about $302,000. Wedbush Securities Inc. purchased a new position in Pershing Square during the second quarter valued at approximately $529,000. Hsbc Holdings PLC bought a new stake in Pershing Square during the 2nd quarter worth approximately $775,000. Readystate Asset Management LP purchased a new stake in Pershing Square in the 2nd quarter worth approximately $822,000. Finally, Proficio Capital Partners LLC bought a new position in Pershing Square in the 2nd quarter valued at $1,459,000.

Pershing Square Company Profile

Pershing Square NYSE: PS is a publicly traded investment holding company managed by Pershing Square Capital Management, L.P., the investment firm founded and led by William "Bill" Ackman. The vehicle provides outside investors with exposure to the firm's concentrated, actively managed investment program and is designed to deliver long‑term capital appreciation through a portfolio of equity and related positions.

The company's principal activities center on investing in publicly traded companies, typically through concentrated long equity positions and selectively using derivatives or other instruments for hedging or to implement investment views.

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