Indianapolis-based Simon Property Group, Inc. (SPG) operates as a retail REIT focused on owning premier shopping, dining, entertainment and mixed-use destinations. Valued at $55.8 billion by market cap, Simon owns 250+ iconic properties across North America, Europe, and Asia providing community gathering places for millions of people every day.
Companies worth $10 billion or more are generally described as “large-cap stocks,” Simon fits this bill perfectly. Given the company’s extensive operations and property holdings, its valuation above this mark is unsurprising.
Simon recently touched its five-year high of $190.13 on Mar. 3 and is currently trading 13.1% below that peak. Meanwhile, SPG stock declined 7.8% over the past three months, marginally lagging behind the S&P 500 Index’s ($SPX) 7.7% drop during the same time frame.
SPG has underperformed the broader market by a small margin over the longer term as well. SPG gained 81 bps over the past six months and 9.5% over the past 52 weeks, compared to SPX’s 1.1% uptick over the past six months and 9.7% returns over the past year.
To confirm the overall uptrend and recent downturn, SPG has traded consistently above its 200-day moving average over the past year and dropped below its 50-day moving average in March.
Simon Property Group’s stock prices gained 3.3% in the trading session after the release of its impressive Q4 results on Feb. 4. Driven by solid growth in lease income, Simon’s overall revenues increased 3.6% year-over-year to approximately $1.6 billion, exceeding the Street’s expectations by 1.9%. Meanwhile, the company delivered a marginal growth in funds from operations (FFO) compared to the year-ago quarter to $1.4 billion and its FFO per share of $3.68 surpassed the consensus estimates by 8.2%, which boosted investor confidence.
Despite its solid financials, Simon Property Group underperformed its peer Realty Income Corporation’s (O) 10.6% surge over the past 52-week period.
Among the 28 analysts covering the SPG stock, the consensus rating is a “Moderate Buy.” Its mean price target of $191.17 suggests a 15.7% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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