UMH Properties (NYSE:UMH) Hits New 1-Year 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)'s stock price reached a new 52-week low during mid-day trading on Wednesday . The company 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 Analyst Weigh In

A number of research analysts recently issued reports on the company. Wedbush upgraded UMH Properties to a "hold" rating in a report on Wednesday, July 2nd. Wall Street Zen lowered UMH Properties from a "hold" rating to a "sell" rating in a report on Friday, July 18th. Two research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $20.25.

UMH Properties Price Performance

The company has a market capitalization of $1.28 billion, a PE ratio of 107.89, a P/E/G ratio of 2.57 and a beta of 1.07. 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 fifty day simple moving average of $16.20 and a 200-day simple moving average of $16.98.

UMH Properties (NYSE:UMH - Get Free Report) last announced its quarterly earnings results on Wednesday, August 6th. The real estate investment trust reported $0.23 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.25 by ($0.02). The business had revenue of $66.64 million for the quarter, compared to analysts' expectations of $66.07 million. UMH Properties had a return on equity of 5.19% and a net margin of 12.18%. Equities analysts anticipate that UMH Properties, Inc. will post 0.93 earnings per share for the current year.

UMH Properties Announces Dividend

The company also recently disclosed 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 of this dividend is Friday, August 15th. This represents a $0.90 annualized dividend and a dividend yield of 6.0%. UMH Properties's dividend payout ratio (DPR) is presently 642.86%.

Insiders Place Their Bets

In other UMH Properties news, Director Angela D. Pruitt sold 1,600 shares of the firm's stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $16.06, for a total transaction of $25,696.00. Following the transaction, the director owned 9,905 shares of the company's stock, valued at approximately $159,074.30. This trade represents a 13.91% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director William Edward Mitchell sold 75,849 shares of the company's stock in a transaction dated Wednesday, August 13th. The shares were sold at an average price of $16.32, for a total transaction of $1,237,855.68. Following the completion of the sale, the director directly owned 41,368 shares of the company's stock, valued at $675,125.76. The trade was a 64.71% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 133,149 shares of company stock valued at $2,165,532. 8.77% of the stock is currently owned by insiders.

Institutional Investors Weigh In On UMH Properties

A number of institutional investors and hedge funds have recently made changes to their positions in UMH. Nuveen LLC purchased a new stake in shares of UMH Properties in the first quarter valued at about $19,209,000. Alliancebernstein L.P. raised its holdings in shares of UMH Properties by 1,091.0% in the first quarter. Alliancebernstein L.P. now owns 896,183 shares of the real estate investment trust's stock valued at $16,759,000 after buying an additional 820,934 shares during the last quarter. Strs Ohio raised its holdings in shares of UMH Properties by 3,361.8% in the second quarter. Strs Ohio now owns 470,800 shares of the real estate investment trust's stock valued at $7,905,000 after buying an additional 457,200 shares during the last quarter. Cherokee Insurance Co purchased a new stake in shares of UMH Properties in the second quarter valued at about $6,366,000. Finally, American Century Companies Inc. boosted its holdings in shares of UMH Properties by 13.5% in the second quarter. American Century Companies Inc. now owns 2,389,308 shares of the real estate investment trust's stock valued at $40,116,000 after acquiring an additional 283,700 shares in the last quarter. 75.40% of the stock is owned by hedge funds and other institutional investors.

UMH Properties Company Profile

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.