Seritage Growth Properties (NYSE:SRG) Stock Passes Below 50 Day Moving Average - Should You Sell?

Key Points

• Technical sell signal: Shares of Seritage fell below its 50‑day moving average ($2.91), trading as low as $2.51 and last at $2.585, remaining below its 200‑day MA ($3.45).
• Analyst and fundamental weakness: The consensus rating is "Sell" after recent downgrades, and the firm reported a loss (EPS -$0.11) with negative ROE and a deeply negative net margin, indicating weak fundamentals for the small‑cap REIT.
• High institutional ownership: Roughly 78.9% of the stock is held by hedge funds and institutions, several of which modestly increased positions in recent quarters.

Shares of Seritage Growth Properties (NYSE:SRG - Get Free Report) crossed below its fifty day moving average during trading on Friday . The stock has a fifty day moving average of $2.91 and traded as low as $2.51. Seritage Growth Properties shares last traded at $2.5850, with a volume of 138,010 shares trading hands.

Wall Street Analysts Forecast Growth

Several research firms have commented on SRG. Weiss Ratings reiterated a "sell (d-)" rating on shares of Seritage Growth Properties in a research report on Monday, December 29th. Wall Street Zen lowered shares of Seritage Growth Properties from a "hold" rating to a "sell" rating in a research report on Saturday. One analyst has rated the stock with a Sell rating, According to MarketBeat.com, the stock presently has a consensus rating of "Sell".

Seritage Growth Properties Stock Up 2.2%

The company has a debt-to-equity ratio of 0.14, a quick ratio of 16.70 and a current ratio of 16.70. The company's fifty day moving average price is $2.91 and its 200-day moving average price is $3.45. The stock has a market cap of $145.61 million, a P/E ratio of -1.99 and a beta of 2.41.

Seritage Growth Properties (NYSE:SRG - Get Free Report) last released its quarterly earnings results on Tuesday, March 31st. The financial services provider reported ($0.11) EPS for the quarter. Seritage Growth Properties had a negative return on equity of 19.39% and a negative net margin of 374.73%.The firm had revenue of $4.17 million for the quarter.

Hedge Funds Weigh In On Seritage Growth Properties

A number of large investors have recently made changes to their positions in the company. Hotchkis & Wiley Capital Management LLC boosted its stake in shares of Seritage Growth Properties by 0.5% during the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 4,621,280 shares of the financial services provider's stock worth $19,640,000 after purchasing an additional 22,060 shares during the period. K2 Principal Fund L.P. boosted its stake in shares of Seritage Growth Properties by 5.6% during the 4th quarter. K2 Principal Fund L.P. now owns 1,056,400 shares of the financial services provider's stock worth $3,433,000 after purchasing an additional 56,400 shares during the period. Yakira Capital Management Inc. lifted its position in shares of Seritage Growth Properties by 20.9% during the fourth quarter. Yakira Capital Management Inc. now owns 996,854 shares of the financial services provider's stock worth $3,240,000 after purchasing an additional 172,201 shares during the last quarter. Towerview LLC lifted its position in shares of Seritage Growth Properties by 14.3% during the fourth quarter. Towerview LLC now owns 800,000 shares of the financial services provider's stock worth $2,600,000 after purchasing an additional 100,000 shares during the last quarter. Finally, Gabelli Funds LLC lifted its position in shares of Seritage Growth Properties by 0.5% during the fourth quarter. Gabelli Funds LLC now owns 782,397 shares of the financial services provider's stock worth $2,543,000 after purchasing an additional 4,050 shares during the last quarter. 78.93% of the stock is owned by hedge funds and other institutional investors.

About Seritage Growth Properties

Seritage Growth Properties is a publicly traded real estate investment trust (REIT) formed in 2015 as a spin-off from Sears Holdings. Headquartered in New York City, the company owns and operates a diversified portfolio of retail and mixed-use properties that were previously under the Sears and Kmart banners. Since its launch, Seritage has pursued a strategy of unlocking value through active asset management, redevelopment and strategic leasing.

The company's core business activities include the acquisition and redevelopment of retail properties, negotiation of long-term lease agreements with national and regional tenants, and selective disposition of non-core assets.

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