UMH Properties (NYSE:UMH) Reaches New 52-Week Low - Should You Sell?

Key Points

• UMH Properties shares have reached a new 52-week low, trading at $14.86, reflecting a decline in market confidence.
• Analysts have mixed sentiments, with two firms maintaining a "buy" rating and one downgrading the stock to a "sell," resulting in a consensus rating of Moderate Buy and an average price target of $20.25.
• The company announced a quarterly dividend of $0.225, yielding 6.0%, but its high dividend payout ratio of 642.86% raises concerns about sustainability.

UMH Properties, Inc. (NYSE:UMH - Get Free Report) hit a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $14.88 and last traded at $14.86, with a volume of 83634 shares trading hands. The stock had previously closed at $15.14.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on UMH. Wedbush raised shares of UMH Properties to a "hold" rating in a research note on Wednesday, July 2nd. Wall Street Zen lowered shares of UMH Properties from a "hold" rating to a "sell" rating in a report on Friday, July 18th. Two investment analysts have rated the stock with a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $20.25.

UMH Properties Stock Performance

The firm's fifty day moving average price is $16.20 and its 200 day moving average price is $17.00. The company has a current ratio of 8.56, a quick ratio of 8.56 and a debt-to-equity ratio of 1.08. The stock has a market capitalization of $1.29 billion, a price-to-earnings ratio of 108.56, a price-to-earnings-growth ratio of 2.59 and a beta of 1.07.

UMH Properties (NYSE:UMH - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The real estate investment trust reported $0.23 EPS for the quarter, missing the consensus estimate of $0.25 by ($0.02). UMH Properties had a return on equity of 5.19% and a net margin of 12.18%.The company had revenue of $66.64 million during the quarter, compared to analyst estimates of $66.07 million. Analysts forecast that UMH Properties, Inc. will post 0.93 EPS for the current fiscal year.

UMH Properties Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Shareholders of record on Friday, August 15th will be issued a dividend of $0.225 per share. The ex-dividend date is Friday, August 15th. This represents a $0.90 dividend on an annualized basis and a yield of 5.9%. UMH Properties's dividend payout ratio is 642.86%.

Insiders Place Their Bets

In other UMH Properties news, Director Angela D. Pruitt sold 1,600 shares of the stock in a transaction that occurred on Monday, August 25th. The shares were sold at an average price of $16.06, for a total transaction of $25,696.00. Following the sale, the director directly owned 9,905 shares in the company, valued at $159,074.30. This represents a 13.91% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Samuel A. Landy sold 10,000 shares of the stock in a transaction that occurred on Wednesday, September 3rd. The stock was sold at an average price of $15.25, for a total transaction of $152,500.00. Following the sale, the chief executive officer owned 1,091,283 shares in the company, valued at approximately $16,642,065.75. This trade represents a 0.91% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 133,149 shares of company stock worth $2,165,532 in the last ninety days. 8.77% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On UMH Properties

Institutional investors have recently modified their holdings of the company. GF Fund Management CO. LTD. acquired a new position in shares of UMH Properties during the fourth quarter worth $26,000. KBC Group NV acquired a new position in shares of UMH Properties during the first quarter worth $32,000. Stone House Investment Management LLC acquired a new position in shares of UMH Properties during the first quarter worth $34,000. Summit Securities Group LLC acquired a new position in shares of UMH Properties during the first quarter worth $35,000. Finally, Cloud Capital Management LLC acquired a new position in shares of UMH Properties during the first quarter worth $37,000. 75.40% of the stock is owned by hedge funds and other institutional investors.

About UMH Properties

UMH Properties, Inc, which was organized in 1968, is a public equity REIT that owns and operates 135 manufactured home communities containing approximately 25,800 developed homesites. These communities are located in New Jersey, New York, Ohio, Pennsylvania, Tennessee, Indiana, Michigan, Maryland, Alabama, South Carolina and Georgia.