Weingarten Realty Investors (WRI): Stop Me If You’ve Heard This One Before

Wall Street’s most bullish Weingarten Realty Investors (NYSE:WRI) analysts are predicting the share price to blow past $33 per share during the next 12 months. The current median share price forecast by them is $31, suggesting that the stock could increase 10.75% in that time frame. The average price target of $30.9 calls for a nearly 10.4% increase in the stock price.

Weingarten Realty Investors (NYSE:WRI) rose 0.21% in recent trade and currently has a stock-market value of $3.64B. The shares finished at $27.99, after trading as low as $27.85 earlier in the session. It hit an intraday high Thursday at $28.06. Trading activity significantly weakened as the volume at ready counter decreased to 1,124,059 shares versus 1,134,875 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 937,420 shares. The stock is now 17.61% above against its bear-market low of $23.8 on December 26, 2018. It has retreated -14.4% since it’s 52-week high of $32.02 reached in August. Now the market price is up 6.14% on the year and up 12.82% YTD.

WRI stock’s 50 day simple moving average (SMA 50) price is $27.92 and its 200-day simple moving average (SMA 200) price is $28.92. The company’s stock currently has a total float of 119.51M shares. Its weekly volatility is hovering around 1.51% and felt 1.72% volatility in price over a month. On the upside, the share price will test short term resistance at around $28.08. On a downside, the stock is likely to find some support, which begins at $27.87. The failure to get near-term support could push it to $27.76.

It had seen a negative analyst call from BofA/Merrill, which downgraded the stock from Buy to Neutral on March 04. Analysts at CapitalOne, shed their negative views on December 19 by lifting it fromEqual Weight to Overweight. Analysts at BTIG Research, made their first call about the stock on August 01, recommending it is Buy.

When looking at valuations, Weingarten Realty Investors (WRI) has a cheap P/E of 11.02x as compared to industry average of 32.36x. Moreover, it trades for 28.86 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.27x price/book and 6.85x price/sales. Compared to others, Weingarten Realty Investors is in a different league with regards to profitability, having net margins of 61.7%. To put some perspective around this, the industry’s average net margin is 45.82%. WRI’s ROE is 19.3%, which is also considerably better than the industry’s ROE of 6.79%.

Shares of WRI have dropped -5.5% since the company’s most recent earnings report. Over the past 12 fiscal quarters, Weingarten Realty Investors (NYSE:WRI) has topped consensus earnings estimates in 4 quarters (33%), missed earnings in 8 quarters (66%), whereas at 0 occasion EPS met analyst expectations. WRI last reported earnings that receded expectations. The company raked in $0.55 per share, -82.81% change on the same period last year. That was worse than consensus for $0.57. Revenue for the recent quarter stood at $123.99 million, down -9% on last year and below the $124.26 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $116 million to $124.45 million, which should be compared with $141.05 million generated last year. EPS is seen in a range of $0.52 to $0.54, against the $0.59 reported a year ago.