A look into Douglas Emmett Inc. (DEI)’s deeper side

Douglas Emmett Inc. (NYSE: DEI) stock fell -3.46% on Friday to $22.05 against a previous-day closing price of $22.84. With 1.38 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.35 million shares. During the session, the REIT – Office company that operates in wider Real Estate sector, reached to the highest price of $22.88 whereas the lowest price it dropped to was $21.95. The 52-week range on DEI shows that it touched its highest point at $36.97 and its lowest point at $21.35 during that stretch. It currently has a 1-year price target of $28.85. With its current market cap of 3.74 billion, DEI has annualized dividend of $1.12 while the current yield stands at 5.08%. Beta for the stock currently stands at 0.93.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DEI was down-trending over the past week, with a drop of -5.16%, but this was down by -2.65% over a month. Three-month performance dropped to -27.51% while six-month performance fell -31.31%. The stock lost -30.35% in the past year, while it has lost -34.18% so far this year. A look at the trailing 12-month EPS for DEI yields 0.45 with Next year EPS estimates of 0.77. For the next quarter, that number is 0.14. This implies an EPS growth rate of 29.80% for this year and 30.30% for next year. EPS is expected to grow by 33.11% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -7.90%.

Float and Shares Shorts:

At present, 175.66 million DEI shares are outstanding with a float of 168.65 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.59 million, which was 3.18% higher than short shares on Jun 14, 2022. In addition to Mr. Dan A. Emmett as the firm’s Exec. Chairman, Mr. Jordan L. Kaplan serves as its Pres, CEO & Director.

Institutional Ownership:

Through their ownership of 98.38% of DEI’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 61.36% of DEI, in contrast to 4.25% held by mutual funds. Shares owned by individuals account for 36.12%. As the largest shareholder in DEI with 14.03% of the stake, The Vanguard Group, Inc. holds 24,667,477 shares worth 24,667,477. A second-largest stockholder of DEI, BlackRock Fund Advisors, holds 15,727,955 shares, controlling over 8.95% of the firm’s shares. Fidelity Management & Research Co is the third largest shareholder in DEI, holding 10,066,544 shares or 5.73% stake. With a 4.60% stake in DEI, the Vanguard Real Estate Index Fund is the largest stakeholder. A total of 8,087,696 shares are owned by the mutual fund manager. The Government Pension Fund – Global, which owns about 4.15% of DEI stock, is the second-largest Mutual Fund holder. It holds 7,301,728 shares valued at 163.41 million. First Eagle Global Fund holds 3.04% of the stake in DEI, owning 5,349,427 shares worth 119.72 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DEI since 15 analysts follow the stock currently. There are 5 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 9 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With DEI analysts setting a high price target of $32.00 and a low target of $23.00, the average target price over the next 12 months is $27.50. Based on these targets, DEI could surge 45.12% to reach the target high and rise by 4.31% to reach the target low. Reaching the average price target will result in a growth of 24.72% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. DEI will report FY 2022 earnings on 02/07/2023. Analysts have provided yearly estimates in a range of $0.63 being high and $0.51 being low. For DEI, this leads to a yearly average estimate of $0.58. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Douglas Emmett Inc. surprised analysts by -$0.00 when it reported $0.14 EPS against a consensus estimate of $0.14. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is $0.16 and the low estimate is $0.12. The average estimate for the next quarter is thus $0.15.

Summary of Insider Activity:

Insiders traded DEI stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 1 while that of sell transactions has risen to 1 over the past year. The total number of shares bought during that period was 31,000 while 61,311 shares were sold.

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