Many stocks have been testing new highs in 2020, and one of the most notable is The Macerich Company (MAC). Currently, MAC is trading at $13.13 and the avg recommendation for the stock is Hold. while the current analyst price target stands at $11.10.
To add more color to this target, the company’s high over the last year is $35.15 and the low is $4.53. Over the last 52 weeks, MAC is down -62.64% 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, MAC reported a profit of $43.54 million. The Macerich Company also saw revenues increase to $226.95 million. In addition, MAC has free cash flow of $21.45 million as of 03-2020 The company’s EBITDA came in at $131.37 million which compares well with its peers.
MAC booked profit margins of 10.30%, its Return on Equity (ROE) is 3.60%, and its Return on Assets is 1.10%. All told, it is clear that, MAC needs to be on your watchlist.
About The Macerich Company
If readers are unfamiliar, Macerich is a fully integrated, self-managed and self-administered real estate investment trust, which focuses on the acquisition, leasing, management, development and redevelopment of regional malls throughout the United States. Macerich currently owns 51 million square feet of real estate consisting primarily of interests in 47 regional shopping centers. Macerich specializes in successful retail properties in many of the country’s most attractive, densely populated markets with significant presence in the West Coast, Arizona, Chicago and the Metro New York to Washington, DC corridor. A recognized leader in sustainability, Macerich has achieved the #1 GRESB ranking in the North American Retail Sector for five straight years (2015 2019).
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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. MAC has a short ratio of 5.65 and outstanding shares of 149.26M.
MAC has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 11.7 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 0.64. Investors should also keep an eye on sector updates as MAC has historically followed its peers on positive news.
All told, The Macerich Company MAC has strung together solid data and demonstrated underlying fundamentals. At its current valuation, MAC 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 Macerich Company MAC is now commanding a market cap of 1.96B and a float of 142.12M. MAC 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 MAC 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 MAC, either long or short, and we have not been compensated for this article.