W. P. Carey Inc. (WPC) Demands Investors Rethink Their Bets

For this quarter, Wall Street analysts forecast W. P. Carey Inc. (WPC) revenue in a range of $282.9 million to $282.9 million, which should be compared with $176.93 million generated last year. EPS is seen in a range of $1.17 to $1.24, against the $1.16 reported a year ago.The shares have gained 5.3% since the company’s last earnings report. Over the past 12 fiscal quarters, W. P. Carey Inc. (NYSE:WPC) has topped consensus earnings estimates in 0 quarters (0%), missed earnings in 12 quarters (100%), whereas at 0 occasion EPS met analyst expectations. WPC last reported earnings on November 02, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $1.29 per share, -53.76% change on the same period last year. That was better than consensus for $1.25. Revenue for the recent quarter stood at $209.38 million, up 19% on last year and above the $194.89 million predicted by analysts.

WPC’s 50 day simple moving average (SMA 50) price is $65.74 and its 200-day simple moving average (SMA 200) price is $64.84. The company’s stock currently has a total float of 159.18M shares. Its weekly volatility is hovering around 1.95% and felt 1.98% volatility in price over a month. On the upside, the share price will test short term resistance at around $71. On a downside, the stock is likely to find some support, which begins at $68. The failure to get near-term support could push it to $66.

Separately, it has been reported that multiple insider activity took place at W. P. Carey Inc. (WPC). Director Niehaus Christopher acquired 3,850 shares for $10,561 in transaction occurred on 2018/11/13. After making this transaction, the Director owns a direct stake of 254,408 shares, worth $739,270, as per the last closing price. On 2018/11/06 Hoysradt Jean, Director at WPC, purchased 2,300 shares at an average price of $64.73 per share. The new stake is valued at $647,850.

Chief Accounting Officer, Mahalingam Arjun had divested 614 shares for $2,272 through a trade on 2018/05/29. Following this activity, the insider holds 40,868 shares worth $159,040 as of recent close.

It had seen a positive analyst call from Evercore ISI, which upgraded the stock from Underperform to In-line on February 27. Analysts at Evercore ISI, shed their positive views on December 11 by lowering it fromIn-line to Underperform. The stock won favor of Evercore ISI analysts who expressed their confidence in it using an upgrade from Underperform to In-line on August 14. Evercore ISI analysts came out with bearish views on June 12 when the call was made. They think the stock is now Underperform compared to to their prior call for In-line.

When looking at valuations, W. P. Carey Inc. (WPC) has a cheap P/E of 26.57x as compared to industry average of 29.02x. Moreover, it trades for 29.81 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.47x price/book and 13.94x price/sales. Compared to others, W. P. Carey Inc. is in a different league with regards to profitability, having net margins of 36.2%. To put some perspective around this, the industry’s average net margin is 54.93%. WPC’s ROE is 9.4%, which is also considerably better than the industry’s ROE of 7.3%.

W. P. Carey Inc. (NYSE:WPC) shares went up 2.43% in Thursday’s session, putting the price tag at $70 plus $11.28B in market capitalization. Earlier in the session, the stock traded between $67 and $70. Trading activity significantly improved as the volume at ready counter increased to 3,542,373 shares versus 2,172,250 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 630,047 shares. The stock is now 18.18% above against its bear-market low of $59.23 on February 12, 2018. It has retreated -1.84% since it’s 52-week high of $71.29 reached in December. Now the market price is down -0.14% on the year and up 1.6% YTD.