Washington Prime Group Inc. (WPG): A Good Stock To Sink Your Teeth Into?

CEO Conforti Louis G acquired 16,286 shares in Washington Prime Group Inc. (NYSE:WPG) for $171,858 in transaction occurred on 2018/11/15. After making this transaction, the CEO owns a direct stake of 99,996 shares, worth $1,056,927, as per the last closing price. On 2018/09/20 Conforti Louis G, CEO at WPG, purchased 13,857 shares at an average price of $7.22 per share. The new stake is valued at $956,768.

Separately, it had been reported that some other WPG insiders also took part of the insider trading activity. CEO, Conforti Louis G had invested in 20,500 shares for $141,715 through a trade on 2018/08/08. Following this activity, the insider holds 149,855 shares worth $871,547 as of recent close. Wall Street’s most bullish Washington Prime Group Inc. (NYSE:WPG) analysts are predicting the share price to blow past $6.6 per share during the next 12 months. The current median share price forecast by them is $6.3, suggesting that the stock could increase 2.44% in that time frame. The average price target of $6.3 calls for a nearly 2.44% increase in the stock price.

Washington Prime Group Inc. (WPG) trading activity significantly improved as the volume at ready counter increased to 3,114,579 shares versus 2,099,020 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,653,679 shares. The share price rose 2.84% in recent trade and currently has a stock-market value of $1.17B. The shares finished at $6.15, after trading as low as $5.82 earlier in the session. It hit an intraday high Thursday at $6.15. The stock is now 13.89% above against its bear-market low of $5.4 on February 12, 2018. It has retreated -37.24% since it’s 52-week high of $8.44 reached in July. Now the market price is down -10.87% on the year and down -13.62% YTD.

WPG’s 50 day simple moving average (SMA 50) price is $6.54 and its 200-day simple moving average (SMA 200) price is $7.08. The company’s stock currently has a total float of 185.26M shares. Its weekly volatility is hovering around 4.2% and felt 3.71% volatility in price over a month. On the upside, the share price will test short term resistance at around $6.26. On a downside, the stock is likely to find some support, which begins at $5.93. The failure to get near-term support could push it to $5.71.

It had seen a negative analyst call from Boenning & Scattergood, which downgraded the stock from Neutral to Under Perform on August 23. Analysts at Goldman, shed their positive views on July 15 by lowering it fromBuy to Neutral. The stock lost favor of Sun Trust Rbsn Humphrey analysts who expressed their lack of confidence in it using a downgrade from Buy to Neutral on January 22. Goldman analysts came out with bullish views on January 06 when the call was made. They think the stock is now Buy compared to to their prior call for Neutral.

When looking at valuations, Washington Prime Group Inc. (WPG) has a cheap P/E of 15.77x as compared to industry average of 29.02x. Moreover, it trades for 307.5 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.45x price/book and 1.61x price/sales. Compared to others, Washington Prime Group Inc. is in a different league with regards to profitability, having net margins of 10.3%. To put some perspective around this, the industry’s average net margin is 54.93%. WPG’s ROE is 8.8%, which is also considerably better than the industry’s ROE of 7.3%.

Shares of Washington Prime Group Inc. (WPG) have dropped -2.6% since the company’s last earnings report. Over the past 12 fiscal quarters, Washington Prime Group Inc. (NYSE:WPG) has topped consensus earnings estimates in 1 quarters (8%), missed earnings in 11 quarters (91%), whereas at 0 occasion EPS met analyst expectations. WPG last reported earnings on October 24, 2018 when it released Sep-18 results that receded expectations. The company raked in 0 per share, -100% change on the same period last year. That was worse than consensus for $0.03. Revenue for the recent quarter stood at $179.92 million, down 0% on last year and above the $179.22 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $183.16 million to $188.41 million, which should be compared with $195 million generated last year. EPS is seen in a range of $0.06 to $0.06, against the 0 reported a year ago.