A New Development in Brixmor Property Group Inc. (BRX)

Brixmor Property Group Inc. (NYSE:BRX) has been downgraded by JP Morgan on December 19 which now rates the stock as Neutral compared with Overweight rating suggested in the past. Analysts at KeyBanc Capital Mkts, shed their negative views on October 29 by lifting it fromSector Weight to Overweight. The stock lost favor of Sandler O’Neill analysts who expressed their lack of confidence in it using a downgrade from Buy to Hold on August 01. Stifel, reiterated their call for Hold, on July 31. On the other hand, they had set new target price to $18 versus $16.

BRX stock dropped -0.11% in recent trade and currently has a stock-market value of $5.28B. The shares finished at $17.61. Trading activity significantly weakened as the volume at ready counter decreased to 1,982,833 shares versus 3,215,595 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 4,739,862 shares. The stock is now 27.24% above against its bear-market low of $13.84 on April 25, 2018. It has retreated -6.25% since it’s 52-week high of $18.71 reached in August. Now the market price is up 13.32% on the year and up 19.88% YTD.

Brixmor Property Group Inc. (BRX)’s 50 day simple moving average (SMA 50) price is $16.85 and its 200-day simple moving average (SMA 200) price is $16.78. The company’s stock currently has a total float of 297.77M shares. Its weekly volatility is hovering around 1.37% and felt 1.6% volatility in price over a month. On the upside, the share price will test short term resistance at around $17.7. On a downside, the stock is likely to find some support, which begins at $17.49. The failure to get near-term support could push it to $17.37.

When looking at valuations, Brixmor Property Group Inc. (BRX) has a cheap P/E of 14.53x as compared to industry average of 29.09x. Moreover, it trades for 21.24 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.86x price/book and 4.28x price/sales. Compared to others, Brixmor Property Group Inc. is in a different league with regards to profitability, having net margins of 29.6%. To put some perspective around this, the industry’s average net margin is 56.28%. BRX’s ROE is 12.8%, which is also considerably better than the industry’s ROE of 7.4%.

Shares of BRX have dropped -1.3% since the company’s most recent earnings report. Over the past 12 fiscal quarters, Brixmor Property Group Inc. (NYSE:BRX) has topped consensus earnings estimates in 0 quarters (0%), missed earnings in 11 quarters (91%), whereas at 1 occasion EPS met analyst expectations. Revenue for the recent quarter stood at $297.65 million, down -7% on last year and above the $296.57 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $284.28 million to $300.3 million, which should be compared with $310.46 million generated last year. EPS is seen in a range of $0.15 to $0.24, against the $0.25 reported a year ago.