Many stocks have been testing new highs in 2020, and one of the most notable is SL Green Realty Corp. (SLG). Currently, SLG is trading at $63.12 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $60.27.
To add more color to this target, the company’s high over the last year is $96.39 and the low is $35.16. Over the last 52 weeks, SLG is down -34.52% 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, SLG reported a profit of $104.79 million. SL Green Realty Corp. also saw revenues increase to $314.3 million. In addition, SLG has free cash flow of -$146.55 million as of 03-2020 The company’s EBITDA came in at $175.56 million which compares well with its peers.
SLG booked profit margins of 26.10%, its Return on Equity (ROE) is 6.10%, and its Return on Assets is 2.50%. All told, it is clear that, SLG needs to be on your watchlist.
About SL Green Realty Corp.
If readers are unfamiliar, SL Green Realty Corp., an S&P 500 company and Manhattan’s largest office landlord, is a fully integrated real estate investment trust, or REIT, that is focused primarily on acquiring, managing and maximizing value of Manhattan commercial properties. As of March 31, 2020, SL Green held interests in 102 buildings totaling 49.4 million square feet. This included ownership interests in 28.8 million square feet of Manhattan buildings and 19.6 million square feet securing debt and preferred equity investments.
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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. SLG has a short ratio of 3.20 and outstanding shares of 77.86M.
SLG has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 3.13 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 4.02. Investors should also keep an eye on sector updates as SLG has historically followed its peers on positive news.
All told, SL Green Realty Corp. SLG has strung together solid data and demonstrated underlying fundamentals. At its current valuation, SLG 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.
SL Green Realty Corp. SLG is now commanding a market cap of 4.91B and a float of 75.43M. SLG 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 SLG 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 SLG, either long or short, and we have not been compensated for this article.