Taking on analysts’ expectations and winning: Rexford Industrial Realty Inc. (REXR)

Rexford Industrial Realty Inc. (NYSE: REXR) stock fell -0.44% on Friday to $56.68 against a previous-day closing price of $56.93. With 1.2 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.31 million shares. During the session, the REIT – Industrial company that operates in wider Real Estate sector, reached to the highest price of $57.17 whereas the lowest price it dropped to was $56.28. The 52-week range on REXR shows that it touched its highest point at $84.68 and its lowest point at $55.84 during that stretch. It currently has a 1-year price target of $78.38. With its current market cap of 9.93 billion, REXR has annualized dividend of $1.26 while the current yield stands at 2.22%. Beta for the stock currently stands at 0.79.

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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 REXR was down-trending over the past week, with a drop of -5.42%, but this was down by -11.52% over a month. Three-month performance dropped to -2.38% while six-month performance fell -20.08%. The stock lost -5.78% in the past year, while it has lost -30.12% so far this year. A look at the trailing 12-month EPS for REXR yields 0.94 with Next year EPS estimates of 1.05. For the next quarter, that number is 0.22. This implies an EPS growth rate of 57.60% for this year and 12.94% for next year. EPS is expected to grow by 10.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 17.10%.

Float and Shares Shorts:

At present, 171.07 million REXR shares are outstanding with a float of 170.16 million shares on hand for trading. On Jul 14, 2022, short shares totaled 9.39 million, which was 5.49% higher than short shares on Jun 14, 2022. In addition to Mr. Howard Schwimmer as the firm’s Co-CEO & Director, Mr. Michael S. Frankel serves as its Co-CEO & Director.

Institutional Ownership:

Through their ownership of 102.01% of REXR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 60.56% of REXR, in contrast to 53.28% held by mutual funds. Shares owned by individuals account for 0.33%. As the largest shareholder in REXR with 13.49% of the stake, The Vanguard Group, Inc. holds 23,083,206 shares worth 23,083,206. A second-largest stockholder of REXR, BlackRock Fund Advisors, holds 15,492,800 shares, controlling over 9.06% of the firm’s shares. Principal Global Investors LLC is the third largest shareholder in REXR, holding 11,201,375 shares or 6.55% stake. With a 4.31% stake in REXR, the Vanguard Real Estate Index Fund is the largest stakeholder. A total of 7,363,812 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.85% of REXR stock, is the second-largest Mutual Fund holder. It holds 4,874,211 shares valued at 303.22 million. iShares Core S&P Mid Cap ETF holds 2.84% of the stake in REXR, owning 4,852,223 shares worth 301.86 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for REXR since 9 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 2 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 REXR analysts setting a high price target of $84.00 and a low target of $63.00, the average target price over the next 12 months is $75.33. Based on these targets, REXR could surge 48.2% to reach the target high and rise by 11.15% to reach the target low. Reaching the average price target will result in a growth of 32.9% 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. REXR will report FY 2022 earnings on 02/08/2023. Analysts have provided yearly estimates in a range of $0.98 being high and $0.90 being low. For REXR, this leads to a yearly average estimate of $0.93. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Rexford Industrial Realty Inc. surprised analysts by -$0.02 when it reported $0.22 EPS against a consensus estimate of $0.24. The surprise factor in the prior quarter was $0.07. Based on analyst estimates, the high estimate for the next quarter is $0.25 and the low estimate is $0.19. The average estimate for the next quarter is thus $0.22.

Summary of Insider Activity:

Insiders traded REXR stock several times over the past three months with 0 Buys and 3 Sells. In these transactions, 0 shares were bought while 32,284 shares were sold. The number of buy transactions has increased to 8 while that of sell transactions has risen to 7 over the past year. The total number of shares bought during that period was 197,156 while 175,732 shares were sold.

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