Safehold (NYSE:SAFE) Stock Price Down 6.8% on Disappointing Earnings

Key Points

• Shares fell 6.8% intraday to about $14.93 after Safehold missed EPS (reported $0.40 vs. $0.43 expected), even though revenue topped estimates at $110.85M versus $96.51M expected.
• The company paid a quarterly dividend of $0.177 ($0.71 annualized), representing a ~4.8% yield and a payout ratio of 44.38%.
• Analyst coverage is mixed with a consensus rating of "Hold" and an average target of $19.25, highlighted by Morgan Stanley's downgrade to "underweight" (PT $14) and RBC's upgrade to "outperform" (PT $18).

Safehold Inc. (NYSE:SAFE - Get Free Report)'s share price dropped 6.8% during mid-day trading on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $14.84 and last traded at $14.9310. Approximately 24,995 shares changed hands during mid-day trading, a decline of 93% from the average daily volume of 367,664 shares. The stock had previously closed at $16.02.

The company reported $0.40 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.43 by ($0.03). Safehold had a net margin of 29.69% and a return on equity of 4.92%. The firm had revenue of $110.85 million for the quarter, compared to analysts' expectations of $96.51 million.

Safehold Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st were given a dividend of $0.177 per share. This represents a $0.71 dividend on an annualized basis and a yield of 4.8%. The ex-dividend date of this dividend was Tuesday, March 31st. Safehold's payout ratio is 44.38%.

Analyst Upgrades and Downgrades

SAFE has been the subject of a number of research reports. Weiss Ratings reissued a "hold (c-)" rating on shares of Safehold in a research report on Tuesday, April 21st. Morgan Stanley downgraded Safehold from an "equal weight" rating to an "underweight" rating and lowered their price target for the company from $16.00 to $14.00 in a research report on Thursday, January 22nd. Truist Financial boosted their price target on Safehold from $16.00 to $17.00 and gave the company a "hold" rating in a research report on Wednesday, February 18th. Zacks Research cut Safehold from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, March 25th. Finally, Royal Bank Of Canada boosted their price objective on Safehold from $17.00 to $18.00 and gave the stock an "outperform" rating in a research note on Friday, February 20th. Four equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $19.25.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. JPMorgan Chase & Co. lifted its stake in shares of Safehold by 24.7% during the third quarter. JPMorgan Chase & Co. now owns 1,411,158 shares of the company's stock worth $21,859,000 after purchasing an additional 279,664 shares in the last quarter. Geode Capital Management LLC lifted its stake in shares of Safehold by 0.5% during the fourth quarter. Geode Capital Management LLC now owns 1,355,407 shares of the company's stock worth $18,557,000 after purchasing an additional 6,255 shares in the last quarter. Long Pond Capital LP acquired a new position in shares of Safehold during the fourth quarter worth about $12,936,000. Invesco Ltd. lifted its stake in shares of Safehold by 4.6% during the second quarter. Invesco Ltd. now owns 619,951 shares of the company's stock worth $9,646,000 after purchasing an additional 27,395 shares in the last quarter. Finally, Algert Global LLC lifted its stake in shares of Safehold by 137.4% during the third quarter. Algert Global LLC now owns 486,386 shares of the company's stock worth $7,534,000 after purchasing an additional 281,478 shares in the last quarter. Institutional investors and hedge funds own 70.38% of the company's stock.

Safehold Stock Performance

The company has a quick ratio of 34.97, a current ratio of 34.97 and a debt-to-equity ratio of 1.88. The company has a 50 day moving average of $14.99 and a 200 day moving average of $14.54. The firm has a market cap of $1.05 billion, a price-to-earnings ratio of 9.28, a PEG ratio of 1.66 and a beta of 1.84.

Safehold Company Profile

Safehold Inc is a real estate investment trust that seeks to redefine land ownership for commercial property owners. The company acquires perpetual ground leases from landowners and structures long-term leaseback arrangements, enabling building owners to unlock the value of underlying land without relinquishing operational control of their properties. By separating land ownership from building ownership, Safehold offers an alternative to traditional mortgage financing and land sale–leaseback transactions.

Safehold’s portfolio spans multiple commercial real estate sectors, including office, multifamily, industrial and retail, with a focus on high-quality properties in major U.S.

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