The Seritage Growth Properties (SRG) shares are trading at higher $10.76. while the current analyst price target stands at $16.00.
To add more color to this target, the company’s high over the last year is $45.70 and the low is $5.00. Over the last 52 weeks, SRG is down -76.46% while the S&P 500 is up 0.92%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, SRG reported a profit of $-29.73 million. Seritage Growth Properties also saw revenues decrease to $33.32 million. In addition, SRG has free cash flow of -$83.81 million as of 03-2020. The company’s EBITDA came in at $4.38 million which compares well with its peers.
SRG booked profit margins of -49.30%, its Return on Equity (ROE) is -10.40%, and its Return on Assets is -2.80%. All told, it is clear that, SRG needs to be on your watchlist.
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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. SRG has a short ratio of 8.86 and outstanding shares of 37.23M.
SRG has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.93 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -2.12. Investors should also keep an eye on sector updates as SRG has historically followed its peers on positive news.
All told, Seritage Growth Properties SRG has strung together solid data and demonstrated underlying fundamentals. At its current valuation, SRG 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.
Seritage Growth Properties SRG is now commanding a market cap of 401.67M and a float of 29.48M. SRG 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 SRG 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 SRG, either long or short, and we have not been compensated for this article.