Wells Fargo & Company Issues Pessimistic Forecast for Sun Communities (NYSE:SUI) Stock Price

Key Points

• Wells Fargo cut its price target on Sun Communities from $150 to $142, while keeping an overweight rating. The new target still implies about 16% upside from the current share price.
• Analyst sentiment remains broadly positive, with 10 Buy ratings and 5 Hold ratings, and a consensus average target price of $141.27. Other firms have recently adjusted targets in a similar range, showing a mixed but generally constructive outlook.
• Sun Communities shares fell to $122.33 on Friday after the downgrade. The company also recently reported a quarterly EPS miss despite stronger-than-expected revenue, and executives have been selling shares in recent weeks.

Sun Communities (NYSE:SUI - Get Free Report) had its price target lowered by stock analysts at Wells Fargo & Company from $150.00 to $142.00 in a research note issued to investors on Friday,Benzinga reports. The firm presently has an "overweight" rating on the real estate investment trust's stock. Wells Fargo & Company's price objective suggests a potential upside of 16.08% from the stock's current price.

SUI has been the subject of a number of other reports. Mizuho started coverage on Sun Communities in a research note on Tuesday, March 31st. They set an "outperform" rating and a $143.00 price objective for the company. Truist Financial cut their price target on Sun Communities from $147.00 to $141.00 and set a "buy" rating on the stock in a report on Tuesday, May 5th. Evercore reaffirmed an "outperform" rating and issued a $144.00 target price on shares of Sun Communities in a research report on Wednesday, April 29th. Robert W. Baird lifted their target price on Sun Communities from $136.00 to $140.00 and gave the company a "neutral" rating in a research report on Friday, March 6th. Finally, Deutsche Bank Aktiengesellschaft set a $133.00 price target on Sun Communities in a research report on Thursday, May 14th. Ten equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $141.27.

Sun Communities Price Performance

Shares of NYSE:SUI traded down $2.67 during midday trading on Friday, reaching $122.33. 99,968 shares of the company's stock were exchanged, compared to its average volume of 806,325. Sun Communities has a 12 month low of $115.53 and a 12 month high of $137.85. The company has a debt-to-equity ratio of 0.60, a quick ratio of 3.39 and a current ratio of 3.39. The company's 50 day simple moving average is $127.20 and its two-hundred day simple moving average is $127.58. The firm has a market capitalization of $15.07 billion, a PE ratio of 11.11, a price-to-earnings-growth ratio of 4.11 and a beta of 0.82.

Sun Communities (NYSE:SUI - Get Free Report) last posted its earnings results on Monday, April 27th. The real estate investment trust reported ($0.07) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.31 by ($1.38). The firm had revenue of $500.50 million during the quarter, compared to the consensus estimate of $472.40 million. Sun Communities had a net margin of 62.29% and a return on equity of 0.16%. The business's revenue was up 8.0% on a year-over-year basis. During the same quarter last year, the firm posted $1.26 EPS. Sun Communities has set its Q2 2026 guidance at 1.710-1.790 EPS and its FY 2026 guidance at 6.870-7.070 EPS. Equities research analysts expect that Sun Communities will post 6.92 earnings per share for the current fiscal year.

Insider Transactions at Sun Communities

In other Sun Communities news, Director Clunet R. Lewis sold 3,200 shares of the stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $136.15, for a total transaction of $435,680.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Fernando Castro-Caratini sold 23,750 shares of the business's stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $124.43, for a total value of $2,955,212.50. Following the completion of the sale, the executive vice president directly owned 9,998 shares of the company's stock, valued at $1,244,051.14. The trade was a 70.37% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 30,750 shares of company stock valued at $3,907,731. Company insiders own 1.58% of the company's stock.

Institutional Investors Weigh In On Sun Communities

Several large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its position in shares of Sun Communities by 1.4% during the third quarter. Vanguard Group Inc. now owns 18,289,956 shares of the real estate investment trust's stock worth $2,359,404,000 after acquiring an additional 249,501 shares in the last quarter. Dodge & Cox boosted its position in shares of Sun Communities by 2.0% during the 3rd quarter. Dodge & Cox now owns 14,480,815 shares of the real estate investment trust's stock valued at $1,868,025,000 after acquiring an additional 282,055 shares during the last quarter. Norges Bank bought a new stake in shares of Sun Communities during the 4th quarter valued at about $753,364,000. State Street Corp boosted its position in shares of Sun Communities by 4.2% during the 3rd quarter. State Street Corp now owns 5,383,984 shares of the real estate investment trust's stock valued at $699,862,000 after acquiring an additional 214,634 shares during the last quarter. Finally, Wellington Management Group LLP raised its position in Sun Communities by 12.4% during the fourth quarter. Wellington Management Group LLP now owns 5,039,870 shares of the real estate investment trust's stock valued at $624,490,000 after purchasing an additional 554,075 shares in the last quarter. Hedge funds and other institutional investors own 99.59% of the company's stock.

Sun Communities Company Profile

Sun Communities, Inc is a publicly traded real estate investment trust (REIT) that specializes in the acquisition, ownership and operation of manufactured housing communities, recreational vehicle (RV) resorts and marinas. The company's portfolio spans more than 500 manufactured housing communities and over 160 RV resorts, offering affordable, long-term housing as well as short-stay recreational lodging. Through professional on-site management and amenity-rich community designs, Sun Communities serves a diverse customer base that includes retirees, workforce families and vacationers.

Founded in 1975 and headquartered in Southfield, Michigan, Sun Communities has grown organically and through strategic acquisitions to become one of the largest operators in its sector.

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