Office Properties Income Trust (NASDAQ: OPI) stock fell -1.94% on Friday to $6.05 against a previous-day closing price of $6.17. With 10.76 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.91 million shares. During the session, the REIT – Office company that operates in wider Real Estate sector, reached to the highest price of $6.10 whereas the lowest price it dropped to was $5.85. The 52-week range on OPI shows that it touched its highest point at $18.10 and its lowest point at $5.65 during that stretch. It currently has a 1-year price target of $10.00. With its current market cap of 299.78 million, OPI has annualized dividend of $1.00 while the current yield stands at 16.53%. Beta for the stock currently stands at 1.18.
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 OPI was up-trending over the past week, with a rise of 2.72%, but this was down by -12.57% over a month. Three-month performance dropped to -25.86% while six-month performance fell -51.75%. The stock lost -65.41% in the past year, while it has lost -54.68% so far this year. A look at the trailing 12-month EPS for OPI yields 0.22 with Next year EPS estimates of -0.43. For the next quarter, that number is -0.08. This implies an EPS growth rate of 25.40% for this year and 4.40% for next year. EPS is expected to grow by 5.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 23.20%.
Float and Shares Shorts:
At present, 48.35 million OPI shares are outstanding with a float of 47.62 million shares on hand for trading. On Aug 30, 2023, short shares totaled 4.45 million, which was 9.16% higher than short shares on Jul 30, 2023. In addition to Mr. Christopher J. Bilotto as the firm’s Pres & COO, Mr. Matthew C. Brown serves as its CFO & Treasurer.
Through their ownership of 81.72% of OPI’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 47.21% of OPI, in contrast to 29.82% held by mutual funds. Shares owned by individuals account for 2.13%. As the largest shareholder in OPI with 15.71% of the stake, BlackRock Fund Advisors holds 7,632,835 shares worth 7,632,835. A second-largest stockholder of OPI, The Vanguard Group, Inc., holds 6,693,535 shares, controlling over 13.78% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in OPI, holding 2,315,837 shares or 4.77% stake. With a 7.13% stake in OPI, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 3,462,847 shares are owned by the mutual fund manager. The Vanguard Real Estate Index Fund, which owns about 4.20% of OPI stock, is the second-largest Mutual Fund holder. It holds 2,038,801 shares valued at 15.09 million. Vanguard Total Stock Market ETF holds 3.24% of the stake in OPI, owning 1,575,871 shares worth 11.66 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 Jun 29, 2023, OPI reported revenue of $141.32M and operating income of $27.80M. The EBITDA in the recently reported quarter was $85.35M and diluted EPS was -$0.33.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for OPI 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 OPI analysts setting a high price target of $17.00 and a low target of $4.00, the average target price over the next 12 months is $10.00. Based on these targets, OPI could surge 180.99% to reach the target high and fall by -33.88% to reach the target low. Reaching the average price target will result in a growth of 65.29% 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.
Dividends & Yield:
In terms of dividends, OPI has a current ratio of $1.6, which is $1.6 over the trailing 12-months, while a dividend of $2.83 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and OPI currently yields $26.45. In the past year, OPI’s dividend yield has been $26.45, but when looking at the stock over the past five years, its yield has been $12.68. Accordingly, OPI has a current buyback yield of $0.2. This was $0.2 for the TTM, and it was $0.06 for the past five years.
Summary of Insider Activity:
Insiders traded OPI 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 10 while that of sell transactions has risen to 5 over the past year. The total number of shares bought during that period was 35,000 while 11,563 shares were sold.