Safehold (NYSE:SAFE) Reaches New 52-Week Low - Should You Sell?

Key Points

• Safehold shares fell to a new 52-week low of $10.94 during Tuesday trading, closing near $11.10 and remaining below both its 50-day and 200-day moving averages.
• Analyst sentiment has weakened, with several firms downgrading the stock; the consensus rating is “Hold” with an average price target of $15.17.
• Despite the share-price decline, Safehold met quarterly EPS expectations at $0.42, exceeded revenue estimates, and offers an annualized dividend of $0.71, yielding approximately 6.4%.

Safehold Inc. (NYSE:SAFE - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Tuesday. The stock traded as low as $10.94 and last traded at $11.0950, with a volume of 724,180 shares traded. The stock had previously closed at $11.34.

Analyst Upgrades and Downgrades

SAFE has been the topic of a number of recent research reports. JPMorgan Chase & Co. lowered shares of Safehold from a "neutral" rating to an "underweight" rating and set a $14.00 price objective on the stock. in a research note on Thursday, September 24th. UBS Group downgraded shares of Safehold to a "market perform" rating in a research note on Wednesday, October 14th. Weiss Ratings downgraded shares of Safehold from a "hold (c)" rating to a "hold (c-)" rating in a research note on Tuesday, October 6th. Mizuho lowered their price target on Safehold from $16.00 to $14.00 and set a "neutral" rating on the stock in a report on Thursday, September 17th. Finally, Wall Street Zen upgraded Safehold from a "sell" rating to a "hold" rating in a research report on Saturday, July 4th. Two analysts have rated the stock with a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $15.17.

Safehold Trading Down 2.2%

The firm has a market cap of $785.75 million, a PE ratio of 6.85, a P/E/G ratio of 3.38 and a beta of 1.78. The company's fifty day moving average price is $13.71 and its two-hundred day moving average price is $14.88. The company has a quick ratio of 34.36, a current ratio of 34.37 and a debt-to-equity ratio of 1.77.

Safehold (NYSE:SAFE - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The company reported $0.42 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.42. The firm had revenue of $114.65 million during the quarter, compared to analysts' expectations of $110.78 million. Safehold had a net margin of 27.70% and a return on equity of 4.76%. As a group, sell-side analysts forecast that Safehold Inc. will post 1.64 earnings per share for the current fiscal year.

Safehold Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th were issued a $0.1770 dividend. This represents a $0.71 dividend on an annualized basis and a yield of 6.4%. The ex-dividend date of this dividend was Wednesday, September 30th. Safehold's payout ratio is currently 43.83%.

Insider Transactions at Safehold

In other Safehold news, Director Robin Josephs sold 9,500 shares of the business's stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $14.56, for a total transaction of $138,320.00. Following the transaction, the director owned 89,068 shares in the company, valued at approximately $1,296,830.08. The trade was a 9.64% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 3.80% of the company's stock.

Institutional Trading of Safehold

Hedge funds have recently modified their holdings of the business. NewEdge Wealth LLC purchased a new stake in shares of Safehold in the second quarter valued at approximately $10,529,000. Bank of America Corp DE acquired a new position in Safehold during the second quarter worth $5,153,000. Denali Advisors LLC acquired a new position in Safehold during the second quarter worth $4,861,000. Legal & General Group Plc purchased a new position in Safehold in the second quarter worth $4,603,000. Finally, BlackRock Inc. raised its position in Safehold by 2.1% in the second quarter. BlackRock Inc. now owns 9,938,575 shares of the company's stock worth $156,036,000 after acquiring an additional 200,628 shares in the last quarter. 70.38% of the stock is owned by institutional investors and hedge funds.

About Safehold

Safehold Inc NYSE: SAFE is a real estate investment trust focused on owning ground leases. Through its ground-lease model, the company acquires and owns the land beneath commercial, residential, and other real estate assets while leasing that land to property owners under long-term agreements. This structure allows building owners to access the value of the land without selling the underlying property.

Safehold's portfolio has included ground leases supporting multifamily, office, hotel, life sciences, industrial, and other commercial properties.

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