SEGRO (OTCMKTS:SEGXF) Trading Down 4.8% - Here's Why

Key Points

• SEGRO shares fell 4.8% in Tuesday trading, touching $11.50 and ending below the prior close of $12.08 on lighter-than-average volume.
• Takeover speculation with Prologis is driving the news flow, with SEGRO rejecting a third proposal worth about £13.5 billion and Prologis publicly pushing for talks as the deadline nears.
• Analyst sentiment remains mixed, with Kepler upgrading SEGRO to strong-buy while Jefferies cut it to hold; overall, MarketBeat says the stock’s average rating is Hold.

SEGRO (OTCMKTS:SEGXF - Get Free Report)'s stock price dropped 4.8% during mid-day trading on Tuesday . The stock traded as low as $11.50 and last traded at $11.50. Approximately 2,940 shares traded hands during mid-day trading, a decline of 8% from the average daily volume of 3,211 shares. The stock had previously closed at $12.08.

Trending Headlines about SEGRO

Here are the key news stories impacting SEGRO this week:

• Positive Sentiment: Norges Bank Investment Management, a long-term shareholder in both companies, said the proposed combination between Prologis and SEGRO has a clear rationale and deserves constructive discussion, which may support hopes for a deal. Norway Oil Fund Urges Constructive Tie-Up Talks Between Prologis and Segro
• Neutral Sentiment: Jefferies questioned whether SEGRO can create the value its standalone strategy promises without a takeover, noting the company’s development pipeline could generate significant future rents and shareholder value if it executes well. Jefferies asks whether Segro can go it alone as Prologis deadline looms
• Neutral Sentiment: SEGRO issued another announcement regarding a possible combination with Prologis, keeping merger speculation active as the deadline for Prologis to bid or walk away approaches. Further Announcement Regarding a Possible Combination of SEGRO and Prologis
• Negative Sentiment: Prologis said SEGRO rejected a third takeover proposal worth about £13.5 billion, highlighting a stalled negotiation and creating uncertainty over whether a deal will materialize. UK's Segro rejects Prologis' $18.2 billion sweetened takeover proposal
• Negative Sentiment: Prologis increased pressure by publicly criticizing SEGRO’s defense of its standalone plan and rejecting the company’s refusal to engage, which could make negotiations more contentious. Prologis piles pressure on SEGRO as takeover deadline looms

Analyst Upgrades and Downgrades

Several analysts have issued reports on SEGXF shares. Kepler Capital Markets upgraded SEGRO from a "hold" rating to a "strong-buy" rating in a research note on Friday. BNP Paribas Exane started coverage on SEGRO in a research note on Wednesday, July 1st. They issued a "neutral" rating on the stock. The Goldman Sachs Group upgraded SEGRO from a "buy" rating to a "buy" rating in a research report on Monday, June 1st. Finally, Jefferies Financial Group lowered SEGRO from a "buy" rating to a "hold" rating in a research note on Thursday, July 9th. One equities research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Hold".

SEGRO Price Performance

The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.50 and a current ratio of 0.50. The firm's fifty day moving average price is $10.51 and its 200-day moving average price is $10.10.

About SEGRO

SEGRO PLC OTCMKTS: SEGXF is a leading real estate investment trust specializing in the ownership, development and management of modern warehousing, light industrial and urban logistics properties. As a FTSE 100 company, SEGRO’s portfolio encompasses a broad range of distribution centres, last-mile facilities and multi-let industrial estates designed to support high-growth sectors such as e-commerce, retail and manufacturing.

The company traces its origins to the Slough Trading Company, established in 1920, and underwent a major rebranding in 2009 to become SEGRO, reflecting its pan-European ambitions.

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