On April 26th, shares of Gladstone Commercial opened at $11.24 amid mixed views from equity research analysts. Despite a one-year low of $11.05 and a one-year high of $21.15, the stock has seen little movement in the past few months with a 50-day simple moving average of $12.32 and a 200-day simple moving average of $15.77. The company boasts a market cap of $449.60 million, but also carries an unfavorable price-to-earnings ratio of -102.18 and debt-to-equity ratio of 3.92.
While some equities analysts have rated the stock as a “buy,” others have downgraded it to “hold” or lower based on various factors including financial ratios and earnings results. On February 24th, EF Hutton Acquisition Co I reaffirmed their “buy” rating with a price target set at $18.00 (down from $20.00). However, Janney Montgomery Scott lowered its rating from “buy” to “neutral” and issued a stock price objective at $17.50 on January 13th.
Gladstone Commercial has also undergone recent insider trading activity with purchases made by CIO Elliot Wislar, Jr., who acquired 2,000 shares for an average cost of $13.68 per share on March 6th, as well as President Arthur S Cooper who bought 3,600 shares valued at $48,600 during the same transaction.
Recent quarterly earnings caused stir among investors when the real estate investment trust reported earnings per share of ($0.03) for Q4 on February 22nd, trailing behind the consensus estimate by ($0.42). While revenue only slightly missed projections at $37.22 million compared to estimates anticipating just over that figure at $37.31 million.
It remains to be seen if Gladstone Commercial can climb back up from current lows to reach solid levels of both revenue and investor confidence. For now, the stock carries an average “Moderate Buy” rating among analysts surveyed by Bloomberg, with an average price target of $16.83.
Fluctuating Q2 Earnings Estimates for Gladstone Commercial Co. Raises Concern Among Institutional Investors and Hedge Funds
Gladstone Commercial Co. (NASDAQ: GOOD), a well-known real estate investment trust, has been experiencing fluctuations in its Q2 2023 earnings per share (EPS) estimates. The recent note issued to investors by B. Riley’s research analysts has estimated that Gladstone Commercial will earn $0.36 per share for the quarter, which is a decrease from their previous forecast of $0.37.
This news comes as a shock to institutional investors and hedge funds who have recently added or reduced their stakes in the business, with ownership of 45.84% of the stock being distributed amongst them.
US Bancorp DE grew its stake in Gladstone Commercial by 64.7% in the third quarter and now owns over 1600 shares valued at $25,000 after acquiring an additional 637 shares during the period. Moreover, Arizona State Retirement System lifted its holdings by 6.2% in the fourth quarter and now owns over 11,000 shares of Gladstone Commercial’s stock valued at $206,000 after purchasing an additional 652 shares.
Legal & General Group Plc also took notice and lifted its holdings by purchasing an extra 696 shares in the fourth quarter and currently owning over 17,500 shares worth around $325,000. Cetera Advisor Networks LLC followed suit and acquired an additional 778 shares this year during the first quarter, thus bringing their total ownership to over 15,700 stocks worth approximately $347,000.
Lastly, Greenspring Advisors LLC capitalized on Gladstone’s position in the market and acquired over 800 additional stocks during Q3 last year while owning close to forty thousand stocks within this sector.
Overall, despite fluctuations experienced by Gladstone’s Q2 EPS estimates – falling marginally from previous figures – it remains stable due to continuous investments made by institutional investors and hedge funds on behalf of their clients’ and themselves respectively for a long-term engagement in the market.