Macerich (NYSE: MAC) has seen its price target increased from $18.00 to $19.00 by JPMorgan Chase & Co., according to a report released on February 27, 2024. The investment bank currently maintains an underweight rating on the real estate investment trust (REIT), indicating a cautious outlook on the stock.
This adjustment follows a series of evaluations from various financial institutions. On December 15, 2023, Jefferies Financial Group reaffirmed a “buy” rating, setting a price target of $21.00. Similarly, on February 23, 2024, KeyCorp assigned an “overweight” rating, with a target of $25.00. In contrast, Goldman Sachs Group lowered its target from $15.00 to $17.00, rating the stock as a “sell” in a report dated March 2, 2024.
On January 20, 2024, Truist Financial raised its price target on Macerich to $20.00 while maintaining a “buy” rating, and Citigroup subsequently lifted its target to $21.00 with a “neutral” rating on February 25, 2024. Overall, six analysts recommend buying the stock, five suggest holding, and three advocate selling, leading to an average rating of “Hold” and an average price target of $20.46, as reported by MarketBeat.com.
Macerich’s recent financial performance has not been stellar. The company reported earnings on February 18, 2024, revealing an earnings per share (EPS) of (0.07), significantly below the consensus estimate of $0.43. The firm generated revenue of $261.70 million, slightly surpassing analyst expectations of $260.48 million. Nonetheless, Macerich’s revenue declined by 4.4% compared to the same quarter in the previous year, when the company recorded an EPS of $0.47. The financial report indicated a negative net margin of 19.44% and a negative return on equity of 7.32%, raising concerns among investors.
Looking ahead, analysts project that Macerich will achieve an EPS of 1.55 for the current fiscal year, suggesting a potential recovery in earnings.
In addition to financial targets, Macerich announced a quarterly dividend of $0.17, scheduled for payment on March 30, 2024. Shareholders on record as of March 16, 2024 will receive this dividend, which translates to an annualized amount of $0.68 and a yield of 3.7%. The ex-dividend date is also set for March 16, 2024. Notably, the company’s dividend payout ratio currently stands at -88.31%, which indicates a potential challenge in sustaining dividend payments in the near term.
Institutional trading has also been notable for Macerich, with several hedge funds adjusting their positions recently. Farther Finance Advisors LLC increased its stake by 76.8% in the fourth quarter, now holding 1,347 shares valued at $25,000. Global Retirement Partners LLC boosted their holdings by 366.2%, owning 1,394 shares worth $26,000 after acquiring additional shares during the same period. Hantz Financial Services Inc. also reported an increase of 80.4%, now holding 1,535 shares valued at $28,000.
As of now, institutional investors own approximately 87.38% of Macerich’s stock, reflecting significant confidence among large investors in the company’s long-term prospects.
Based in Santa Monica, California, Macerich operates as a real estate investment trust specializing in the acquisition, development, ownership, and management of regional shopping centers across the United States. Since its establishment in 1994, the firm has pursued a strategy focused on high-quality retail properties, including enclosed malls and mixed-use lifestyle centers, aiming to capitalize on strong consumer demographics.
As analysts continue to monitor Macerich’s performance, the changes in price targets and dividend announcements will be critical indicators for investors in the coming months.
