Taking on analysts’ expectations and winning: The Macerich Company (MAC)

The Macerich Company (NYSE: MAC) stock fell -3.38% on Tuesday to $9.71 against a previous-day closing price of $10.05. With 1.67 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.98 million shares. During the session, the REIT – Retail company that operates in wider Real Estate sector, reached to the highest price of $10.22 whereas the lowest price it dropped to was $9.69. The 52-week range on MAC shows that it touched its highest point at $14.51 and its lowest point at $7.38 during that stretch. It currently has a 1-year price target of $11.83. With its current market cap of 2.03 billion, MAC has annualized dividend of $0.68 while the current yield stands at 7.00%. Beta for the stock currently stands at 2.16.

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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 MAC was up-trending over the past week, with a rise of 6.59%, but this was down by -0.72% over a month. Three-month performance dropped to -20.86% while six-month performance fell -27.21%. The stock lost -14.84% in the past year, while it has lost -13.77% so far this year. A look at the trailing 12-month EPS for MAC yields -0.41 with Next year EPS estimates of -0.12. For the next quarter, that number is -0.09. This implies an EPS growth rate of -559.70% for this year and 72.00% for next year. EPS is expected to grow by 0.21% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -18.10%.

Float and Shares Shorts:

At present, 215.29 million MAC shares are outstanding with a float of 206.00 million shares on hand for trading. On Apr 27, 2023, short shares totaled 16.18 million, which was 7.51% higher than short shares on Mar 30, 2023. In addition to Mr. Thomas E. O’Hern CPA as the firm’s CEO & Director, Mr. Edward C. Coppola serves as its Pres & Director.

Institutional Ownership:

Through their ownership of 84.05% of MAC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.48% of MAC, in contrast to 33.30% held by mutual funds. Shares owned by individuals account for 12.55%. As the largest shareholder in MAC with 14.74% of the stake, The Vanguard Group, Inc. holds 31,687,209 shares worth 31,687,209. A second-largest stockholder of MAC, BlackRock Fund Advisors, holds 25,979,824 shares, controlling over 12.08% of the firm’s shares. Smead Capital Management, Inc. is the third largest shareholder in MAC, holding 21,390,798 shares or 9.95% stake. With a 8.79% stake in MAC, the Smead Value Fund is the largest stakeholder. A total of 18,899,431 shares are owned by the mutual fund manager. The Vanguard Real Estate Index Fund, which owns about 4.40% of MAC stock, is the second-largest Mutual Fund holder. It holds 9,464,824 shares valued at 94.55 million. Vanguard Total Stock Market ETF holds 3.26% of the stake in MAC, owning 6,999,701 shares worth 69.93 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, MAC reported revenue of $204.09M and operating income of $29.57M. The EBITDA in the recently reported quarter was $108.38M and diluted EPS was -$0.07.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MAC since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With MAC analysts setting a high price target of $18.00 and a low target of $8.00, the average target price over the next 12 months is $11.85. Based on these targets, MAC could surge 85.38% to reach the target high and fall by -17.61% to reach the target low. Reaching the average price target will result in a growth of 22.04% 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.

Summary of Insider Activity:

Insiders traded MAC 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 23 while that of sell transactions has risen to 2 over the past year. The total number of shares bought during that period was 432,130 while 4,000 shares were sold.

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