Stag Industrial (NYSE:STAG) Issues Earnings Results

Key Points

• Earnings beat: Stag Industrial reported EPS of $0.65 versus a $0.23 consensus and revenue of $224.21M (vs. $221.54M), with revenue up 9% year-over-year and a net margin of 32.35%.
• Significant insider selling: Insiders sold 136,974 shares worth about $5.35M over the last quarter, leaving insiders with just 1.10% ownership after large executive and director dispositions.
• Neutral analyst outlook: The stock trades near $39.56 (market cap $7.56B, P/E 27.1) and carries a consensus "Hold" rating with an average target price of $39.50.

Stag Industrial (NYSE:STAG - Get Free Report) released its quarterly earnings data on Tuesday. The real estate investment trust reported $0.65 earnings per share for the quarter, beating analysts' consensus estimates of $0.23 by $0.42, Zacks reports. Stag Industrial had a return on equity of 7.68% and a net margin of 32.35%.The company had revenue of $224.21 million for the quarter, compared to the consensus estimate of $221.54 million. During the same period in the previous year, the business earned $0.61 earnings per share. The company's quarterly revenue was up 9.0% on a year-over-year basis.

Stag Industrial Price Performance

STAG stock traded up $0.08 during midday trading on Tuesday, reaching $39.56. 1,153,353 shares of the company's stock traded hands, compared to its average volume of 1,411,637. The company has a 50-day simple moving average of $38.12 and a two-hundred day simple moving average of $38.06. The company has a quick ratio of 1.90, a current ratio of 1.90 and a debt-to-equity ratio of 0.89. Stag Industrial has a 1-year low of $31.79 and a 1-year high of $39.99. The company has a market cap of $7.56 billion, a price-to-earnings ratio of 27.10 and a beta of 1.04.

Analyst Ratings Changes

STAG has been the subject of several analyst reports. Barclays restated an "underweight" rating and set a $39.00 target price (down from $40.00) on shares of Stag Industrial in a research report on Tuesday, January 13th. Wall Street Zen upgraded Stag Industrial from a "sell" rating to a "hold" rating in a research note on Saturday, February 7th. iA Financial set a $39.00 price objective on Stag Industrial in a report on Tuesday, January 13th. JPMorgan Chase & Co. boosted their target price on shares of Stag Industrial from $39.00 to $40.00 and gave the company a "neutral" rating in a research note on Thursday, February 19th. Finally, Robert W. Baird set a $40.00 target price on shares of Stag Industrial in a report on Tuesday, February 17th. Three investment 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's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $39.50.

Insiders Place Their Bets

In other news, EVP Matts Pinard sold 25,242 shares of the stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $39.18, for a total transaction of $988,981.56. Following the sale, the executive vice president owned 951 shares in the company, valued at approximately $37,260.18. This represents a 96.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Virgis Colbert sold 18,000 shares of the stock in a transaction on Thursday, February 19th. The stock was sold at an average price of $38.08, for a total value of $685,440.00. Following the sale, the director owned 4,210 shares in the company, valued at $160,316.80. The trade was a 81.04% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 136,974 shares of company stock valued at $5,345,904. 1.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Stag Industrial

Several hedge funds and other institutional investors have recently added to or reduced their stakes in STAG. Measured Wealth Private Client Group LLC acquired a new position in shares of Stag Industrial during the third quarter worth approximately $27,000. EverSource Wealth Advisors LLC increased its holdings in shares of Stag Industrial by 270.1% in the second quarter. EverSource Wealth Advisors LLC now owns 1,436 shares of the real estate investment trust's stock valued at $52,000 after purchasing an additional 1,048 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Stag Industrial by 76.4% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 1,764 shares of the real estate investment trust's stock valued at $62,000 after purchasing an additional 764 shares in the last quarter. Empowered Funds LLC bought a new position in Stag Industrial in the 4th quarter worth approximately $70,000. Finally, Advisors Asset Management Inc. raised its position in Stag Industrial by 160.4% in the 4th quarter. Advisors Asset Management Inc. now owns 1,919 shares of the real estate investment trust's stock worth $71,000 after purchasing an additional 1,182 shares during the last quarter. Institutional investors and hedge funds own 88.67% of the company's stock.

About Stag Industrial

Stag Industrial, Inc is a real estate investment trust (REIT) that specializes in the acquisition, ownership and operation of single-tenant industrial properties throughout the United States. The company's portfolio is focused on free-standing warehouses, distribution centers and light manufacturing facilities designed to meet the logistical needs of a diverse tenant base. By concentrating on properties with straightforward layouts and minimal common-area maintenance, Stag Industrial seeks to deliver stable rental income and attractive risk-adjusted returns for its shareholders.

Since its founding in 2010 and initial public offering in 2011, Stag Industrial has pursued a disciplined investment strategy centered on high-quality, well-located assets.