CubeSmart (NYSE:CUBE) Reaches New 12-Month Low After Analyst Downgrade

CubeSmart (NYSE:CUBE)’s share price reached a new 52-week low on Monday after Barclays lowered their price target on the stock from $54.00 to $50.00. Barclays currently has an equal weight rating on the stock. CubeSmart traded as low as $39.80 and last traded at $39.92, with a volume of 791449 shares traded. The stock had previously closed at $40.23.

Several other equities research analysts also recently weighed in on the company. Scotiabank lowered their price target on CubeSmart from $53.00 to $52.00 and set a “sector outperform” rating for the company in a report on Monday, November 25th. Jefferies Financial Group cut shares of CubeSmart from a “buy” rating to a “hold” rating and lowered their target price for the stock from $57.00 to $46.00 in a research note on Thursday, January 2nd. Deutsche Bank Aktiengesellschaft raised shares of CubeSmart from a “sell” rating to a “hold” rating and dropped their target price for the stock from $46.00 to $45.00 in a research report on Friday, January 10th. Royal Bank of Canada decreased their price target on shares of CubeSmart from $56.00 to $53.00 and set an “outperform” rating for the company in a report on Monday, November 4th. Finally, Wells Fargo & Company lifted their price objective on shares of CubeSmart from $48.00 to $50.00 and gave the stock an “equal weight” rating in a research note on Monday, October 21st. Eight equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. According to data from MarketBeat.com, CubeSmart presently has an average rating of “Hold” and an average target price of $50.00.

Institutional Investors Weigh In On CubeSmart

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CUBE. Allspring Global Investments Holdings LLC grew its holdings in CubeSmart by 14.0% during the third quarter. Allspring Global Investments Holdings LLC now owns 5,089,845 shares of the real estate investment trust’s stock worth $273,986,000 after acquiring an additional 624,661 shares during the period. Geode Capital Management LLC boosted its position in CubeSmart by 1.1% in the 3rd quarter. Geode Capital Management LLC now owns 4,593,010 shares of the real estate investment trust’s stock worth $247,295,000 after purchasing an additional 50,340 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in shares of CubeSmart by 5.3% during the 2nd quarter. Dimensional Fund Advisors LP now owns 3,379,516 shares of the real estate investment trust’s stock worth $152,652,000 after purchasing an additional 169,600 shares during the period. Charles Schwab Investment Management Inc. increased its holdings in shares of CubeSmart by 4.7% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 3,032,885 shares of the real estate investment trust’s stock valued at $163,260,000 after purchasing an additional 135,211 shares in the last quarter. Finally, Barrow Hanley Mewhinney & Strauss LLC increased its holdings in shares of CubeSmart by 12.5% during the 2nd quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 2,728,220 shares of the real estate investment trust’s stock valued at $123,234,000 after purchasing an additional 303,347 shares in the last quarter. 97.61% of the stock is owned by institutional investors and hedge funds.

CubeSmart Stock Performance

The firm’s 50 day moving average is $45.87 and its 200-day moving average is $48.26. The stock has a market capitalization of $9.20 billion, a price-to-earnings ratio of 22.98, a PEG ratio of 13.00 and a beta of 0.87. The company has a debt-to-equity ratio of 1.02, a quick ratio of 0.20 and a current ratio of 0.20.

CubeSmart (NYSE:CUBE) last issued its quarterly earnings data on Thursday, October 31st. The real estate investment trust reported $0.44 earnings per share for the quarter, missing analysts’ consensus estimates of $0.68 by ($0.24). CubeSmart had a return on equity of 14.33% and a net margin of 37.79%. The firm had revenue of $270.90 million during the quarter, compared to analyst estimates of $267.49 million. During the same quarter last year, the company posted $0.68 EPS. The company’s revenue was up 1.1% on a year-over-year basis. Analysts forecast that CubeSmart will post 2.63 earnings per share for the current fiscal year.

CubeSmart Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, January 16th. Shareholders of record on Thursday, January 2nd will be issued a $0.52 dividend. This is a positive change from CubeSmart’s previous quarterly dividend of $0.51. This represents a $2.08 annualized dividend and a yield of 5.11%. The ex-dividend date is Thursday, January 2nd. CubeSmart’s dividend payout ratio (DPR) is presently 117.51%.

About CubeSmart

CubeSmart is a self-administered and self-managed real estate investment trust. The Company's self-storage properties are designed to offer affordable, easily accessible and, in most locations, climate-controlled storage space for residential and commercial customers. According to the 2023 Self-Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the United States.