Extra Space Storage Downgraded to Sell by StockNews.com

Extra Space Storage (NYSE:EXR) has recently received a downgrade from the research firm StockNews.com. The firm changed its rating on the company from "hold" to "sell" in a report released on Friday.

Several other analysts have also weighed in on the stock in recent weeks. On February 21st, Wells Fargo & Company reduced their target price for Extra Space Storage from $170.00 to $165.00 while maintaining an "equal weight" rating. Royal Bank of Canada followed suit on February 27th, lowering their target from $167.00 to $163.00, also assigning a "sector perform" rating. Similarly, Scotiabank adjusted their target price from $167.00 to $165.00 and kept a "sector perform" rating. Barclays, on the other hand, decreased their target price from $192.00 to $184.00 while rating the stock as "overweight" in a report on January 13th. In contrast, Truist Financial raised its price target from $167.00 to $168.00 in a report released on December 5th, giving the stock a "hold" rating.

Currently, the consensus on Extra Space Storage reflects a 'Hold' rating, with two analysts recommending a sell, six suggesting a hold, and four issuing buy recommendations. As reported by MarketBeat.com, the average target price for the stock stands at $171.36.

Price Performance of Extra Space Storage

During midday trading on Friday, Extra Space Storage shares rose by $2.06, reaching a price of $157.11. The trading volume for the day hit 1,807,243 shares, exceeding the average volume of 1,354,380 shares. The company holds a market capitalization of $33.31 billion and reports a price-to-earnings ratio of 41.13, with a PEG ratio of 7.76. The stock has a current ratio and quick ratio of 0.23 each, and a debt-to-equity ratio of 0.77. Over the past year, Extra Space Storage has seen a low of $131.02 and a high of $184.87. The stock's fifty-day and two-hundred-day simple moving averages are $152.91 and $163.07, respectively.

On February 25th, the company released its earnings results, which showed an earnings per share (EPS) of $2.03 for the quarter, surpassing the analysts’ consensus estimate of $1.10 by $0.93. The reported revenue was $821.90 million, exceeding expectations of $707.34 million. The company's net margin was noted at 25.35%, along with a return on equity of 5.51%. Analysts currently predict that Extra Space Storage will achieve an EPS of 8.1 for the fiscal year.

Insider Transactions at Extra Space Storage

In recent insider trading activity, EVP William N. Springer sold 1,220 shares of Extra Space Storage on February 28th for an average price of $152.66, totaling approximately $186,245. Following this transaction, he reported direct ownership of 20,158 shares valued at around $3,077,320.28. This sale represented a 5.71% decrease in his stake.

Additionally, CEO Joseph D. Margolis sold 7,500 shares on January 2nd at an average price of $148.01, amounting to approximately $1,110,075. Following this transaction, he holds 16,690 shares valued at approximately $2,470,286.90, reflecting a 31% decrease in his ownership. Insiders currently hold about 1.36% of the company's stock.

Institutional Holdings in Extra Space Storage

Recent changes in institutional positions have been notable as well. Tidal Investments LLC increased its stake in Extra Space Storage by 34.4% during the third quarter, owning 12,640 shares valued at $2,278,000 after acquiring an additional 3,234 shares. Swedbank AB also raised its position by 4.5%, now holding 243,130 shares valued at $43,810,000 after an increase of 10,408 shares. UBS Asset Management Americas LLC made a significant boost of 724.1%, acquiring 1,981,799 shares valued at $357,100,000 after purchasing an additional 1,741,320 shares.
Duff & Phelps Investment Management Co. and Brown Financial Advisors also increased their positions, holding 35,503 and 9,134 shares, respectively. Overall, hedge funds and institutional investors own approximately 99.11% of Extra Space Storage's shares.

About Extra Space Storage

Founded and headquartered in Salt Lake City, Utah, Extra Space Storage Inc. operates as a self-administered and self-managed Real Estate Investment Trust (REIT), and is a member of the S&P 500. As of December 31, 2023, the company manages and owns 3,714 self-storage facilities across 42 states and Washington, D.C. Their facilities offer around 2.6 million units, amounting to approximately 283 million square feet of rentable space under various brands, including Extra Space, Life Storage, and Storage Express.

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