CBL & Associates Properties, Inc (CBL): Insiders Smell A Bargain?

CBL & Associates Properties, Inc (NYSE:CBL) has been downgraded by Jefferies on December 21 which now rates the stock as Underperform compared with Hold rating suggested in the past. Analysts at Raymond James, shed their positive views on December 20 by lowering it fromMkt Perform to Underperform. The stock lost favor of Citigroup analysts who expressed their lack of confidence in it using a downgrade from Neutral to Sell on December 14. Jefferies analysts came out with bearish views on November 06 when the call was made. They think the stock is now Hold compared to to their prior call for Buy.

CBL & Associates Properties, Inc (CBL) hit an intraday high Wednesday at $3.82. The shares finished at $3.8, after trading as low as $3.6 earlier in the session. It rose 0% in recent trade and currently has a stock-market value of $640.41M. Trading activity significantly improved as the volume at ready counter increased to 9,413,815 shares versus 4,121,200 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 3,603,911 shares. The stock is now 6.15% above against its bear-market low of $3.58 on May 10, 2018. It has retreated -131.32% since it’s 52-week high of $8.79 reached in October. Now the market price is down -55.19% on the year and down -32.86% YTD.

CBL’s 50 day simple moving average (SMA 50) price is $4.35 and its 200-day simple moving average (SMA 200) price is $4.84. The company’s stock currently has a total float of 167.73M shares. Its weekly volatility is hovering around 4.51% and felt 4.4% volatility in price over a month. On the upside, the share price will test short term resistance at around $3.88. On a downside, the stock is likely to find some support, which begins at $3.66. The failure to get near-term support could push it to $3.52.

The insider holding in CBL & Associates Properties, Inc (CBL) stood at 0.6% while institutions hold 79.9%. Robeco Institutional Asset Management B.V. is the largest single holder among mutual funds with ownership of over 4.41M CBL shares as of June 30, with a market value of approx. $24.86M as of today. The second largest holder, Northern Trust Corp, with 3.33M shares which equates to $18.55M worth of the stock. At third is Lsv Asset Management, which stood pat with 2.75M shares, a 2.39% position in CBL & Associates Properties, Inc, worth $15.32M.

Separately, it has been reported that multiple insider activity took place at CBL & Associates Properties, Inc (CBL). Chief Legal Officer & Sec. Curry Jeffery V. acquired 756 shares for $4,600 in transaction occurred on 2017/11/15. After making this transaction, the Chief Legal Officer & Sec. owns a direct stake of 4,211 shares, worth $17,480, as per the last closing price. On 2017/05/17 Reinsmidt Kathryn A., Exec VP-Chief Invest. Officer at CBL, purchased 2,688 shares at an average price of $7.34 per share. The new stake is valued at $1,585.

Chief Legal Officer & Sec., Curry Jeffery V. had invested in 2,400 shares for $4,600 through a trade on 2017/05/17. Following this activity, the insider holds 17,688 shares worth $17,480 as of recent close.Wall Street’s most bullish CBL & Associates Properties, Inc (NYSE:CBL) analysts are predicting the share price to blow past $5 per share during the next 12 months. The current median share price forecast by them is $3.75, suggesting that the stock could increase -1.32% in that time frame. The average price target of $3.82 calls for a nearly 0.53% increase in the stock price.

Also, it is trading at rather inexpensive levels at just over 0.6x price/book and 0.72x price/sales. Compared to others, CBL & Associates Properties, Inc is in a different league with regards to profitability, having net margins of -2.5%. To put some perspective around this, the industry’s average net margin is 50.95%. CBL’s ROE is -2%, which is also considerably worse than the industry’s ROE of 8.44%.

Shares of CBL & Associates Properties, Inc (CBL) have dropped -31.9% since the company’s Dec-18 earnings report. Over the past 12 fiscal quarters, CBL & Associates Properties, Inc (NYSE:CBL) has topped consensus earnings estimates in 0 quarters (0%), missed earnings in 12 quarters (100%), whereas at 0 occasion EPS met analyst expectations. CBL last reported earnings on August 01, 2018 when it released Jun-18 results that exceeded expectations. The company raked in $0.46 per share, -95.1% change on the same period last year. That was better than consensus for $0.42. Revenue for the recent quarter stood at $214.6 million, down -6% on last year and above the $205.51 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $208.57 million to $217.24 million, which should be compared with $256.03 million generated last year. EPS is seen in a range of $0.41 to $0.47, against the $0.62 reported a year ago.