Many stocks have been testing new highs in 2020, and one of the most notable is Tanger Factory Outlet Centers Inc. (SKT). Currently, SKT is trading at $9.72 and the avg recommendation for the stock is Moderate Sell. while the current analyst price target stands at $4.83.
To add more color to this target, the company’s high over the last year is $17.94 and the low is $4.05. Over the last 52 weeks, SKT is down -45.82% 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, SKT reported a profit of $-14.67 million. Tanger Factory Outlet Centers Inc. also saw revenues decrease to $111.63 million. In addition, SKT has free cash flow of $16.05 million as of 03-2020 The company’s EBITDA came in at $15.98 million which compares well with its peers.
SKT booked profit margins of -0.60%, its Return on Equity (ROE) is -0.60%, and its Return on Assets is -0.10%. All told, it is clear that, SKT needs to be on your watchlist.
About Tanger Factory Outlet Centers Inc.
If readers are unfamiliar, Tanger Factory Outlet Centers, Inc. (NYSE: SKT), is a publicly-traded REIT headquartered in Greensboro, North Carolina that presently operates and owns, or has an ownership interest in, a portfolio of 39 upscale outlet shopping centers. Tanger’s operating properties are located in 20 states and in Canada, totaling approximately 14.3 million square feet, leased to over 2,800 stores which are operated by more than 510 different brand name companies. The Company has more than 39 years of experience in the outlet industry. Tanger Outlet Centers continue to attract more than 181 million visitors annually. Tanger is furnishing a Form 8-K with the Securities and Exchange Commission that includes a supplemental information package for the quarter ended March 31, 2020.
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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. SKT has a short ratio of 11.22 and outstanding shares of 97.41M.
SKT has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 5.33 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.02. Investors should also keep an eye on sector updates as SKT has historically followed its peers on positive news.
All told, Tanger Factory Outlet Centers Inc. SKT has strung together solid data and demonstrated underlying fundamentals. At its current valuation, SKT 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.
Tanger Factory Outlet Centers Inc. SKT is now commanding a market cap of 946.83M and a float of 91.05M. SKT 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 SKT 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 SKT, either long or short, and we have not been compensated for this article.