Many stocks have been testing new highs in 2020, and one of the most notable is The Howard Hughes Corporation (HHC). Currently, HHC is trading at $66.60 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $95.75.
To add more color to this target, the company’s high over the last year is $135.42 and the low is $35.10. Over the last 52 weeks, HHC is down -50.82% while the S&P 500 is up 1.21%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, HHC reported a profit of $-137.23 million. The Howard Hughes Corporation also saw revenues decrease to $175.18 million. In addition, HHC has free cash flow of -$228.29 million as of 03-2020 The company’s EBITDA came in at -$73.24 million which compares well with its peers.
HHC booked profit margins of -7.40%, its Return on Equity (ROE) is -2.50%, and its Return on Assets is -1.00%. All told, it is clear that, HHC needs to be on your watchlist.
About The Howard Hughes Corporation
If readers are unfamiliar, The Howard Hughes Corporation owns, manages, and develops commercial, residential, and hospitality operating properties in the United States. It operates through three segments: Operating Assets, Master Planned Communities, and Strategic Developments. The Operating Assets segment owns 15 retail, 28 office, 8 multi-family, and 4 hospitality properties, as well as 10 other operating assets and investments primarily located and around The Woodlands, Texas; Columbia, Maryland; New York, New York; Las Vegas, Nevada; and Honolulu, Hawai’i. The Master Planned Communities segment develops and sells residential and commercial land. This segment sells residential land designated for detached and attached single family homes ranging from entry-level to luxury homes; and commercial land parcels designated for retail, office, hospitality, and high density residential projects, as well as services and other for-profit activities, and parcels designated for use by government, schools, and other not-for-profit entities. As of December 31, 2018, this segment had 10,543 remaining saleable acres of land. The Strategic Development segment comprises residential condominium and commercial property projects. This segment consist of 29 development or redevelopment projects. The company was founded in 2010 and is headquartered in Dallas, Texas.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. HHC has a short ratio of 1.63 and outstanding shares of 43.38M.
HHC has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.74 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -1.91. Investors should also keep an eye on sector updates as HHC has historically followed its peers on positive news.
All told, The Howard Hughes Corporation HHC has strung together solid data and demonstrated underlying fundamentals. At its current valuation, HHC represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
The Howard Hughes Corporation HHC is now commanding a market cap of 3.60B and a float of 53.02M. HHC is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of HHC stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in HHC, either long or short, and we have not been compensated for this article.