Wall Street Zen Downgrades Seritage Growth Properties (NYSE:SRG) to Sell

Key Points

• Seritage Growth Properties (SRG) was downgraded by Wall Street Zen from "hold" to sell, Weiss Ratings also reaffirmed a "sell (d-)" and the stock's consensus rating is currently Sell.
• SRG's recent results are weak: the company reported a loss of $0.11 EPS for the quarter, a negative net margin of 374.73%, and a market cap of about $145.6 million with the share price near its 52-week low.
• Despite weak fundamentals, several hedge funds (including Marshall Wace and Goldman Sachs) have recently added or increased positions, and institutional investors now own roughly 78.93% of the stock.

Seritage Growth Properties (NYSE:SRG - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Saturday.

Separately, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Seritage Growth Properties in a report on Monday, December 29th. One analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, Seritage Growth Properties presently has a consensus rating of "Sell".

Seritage Growth Properties Stock Performance

SRG opened at $2.59 on Friday. The company has a quick ratio of 16.70, a current ratio of 16.70 and a debt-to-equity ratio of 0.14. The company has a market cap of $145.61 million, a price-to-earnings ratio of -1.99 and a beta of 2.41. Seritage Growth Properties has a 52-week low of $2.49 and a 52-week high of $4.56. The firm's fifty day simple moving average is $2.91 and its two-hundred day simple moving average is $3.45.

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

Hedge Funds Weigh In On Seritage Growth Properties

Several hedge funds and other institutional investors have recently modified their holdings of SRG. Creek Drive Management Group LLC purchased a new position in shares of Seritage Growth Properties in the fourth quarter worth about $1,421,000. Clutterbuck Capital Management LLC purchased a new position in shares of Seritage Growth Properties in the fourth quarter worth about $1,343,000. Marshall Wace LLP lifted its stake in shares of Seritage Growth Properties by 135.7% in the second quarter. Marshall Wace LLP now owns 435,984 shares of the financial services provider's stock worth $1,343,000 after buying an additional 250,989 shares in the last quarter. Goldman Sachs Group Inc. lifted its stake in shares of Seritage Growth Properties by 376.2% in the fourth quarter. Goldman Sachs Group Inc. now owns 270,978 shares of the financial services provider's stock worth $881,000 after buying an additional 214,069 shares in the last quarter. Finally, Yakira Capital Management Inc. lifted its stake in shares of Seritage Growth Properties by 20.9% in the fourth quarter. Yakira Capital Management Inc. now owns 996,854 shares of the financial services provider's stock worth $3,240,000 after buying an additional 172,201 shares in 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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