Boston Properties (BXP) Cut to “Sell” at Zacks Investment Research

Zacks Investment Research cut shares of Boston Properties (NYSE:BXP) from a hold rating to a sell rating in a research note issued to investors on Tuesday.

According to Zacks, “Shares of Boston Properties have underperformed its industry, over the past year. Also, the stock has seen the Zacks Consensus Estimate for fourth-quarter 2017 funds from operations (FFO) per share being revised downward in two months’ time. Notably, there is growth in supply of office space in the market and this remains a concern because higher supply usually leads to lesser absorption and also curtails the landlord’s capability to demand more rents. There is also a trend of increased concessions in some of the markets. Moreover, big financial players are opting for resizing of their business and cost containment efforts, which is affecting demand for office space. Furthermore, rate hikes have added to its woes. Nevertheless, Boston Properties’ assets located in select, high-rent, high barrier-to-entry geographic markets, diversified tenant and industry base have the capacity to drive long-term growth.”

A number of other equities analysts have also recently commented on BXP. KeyCorp reissued a hold rating on shares of Boston Properties in a research note on Wednesday, October 4th. Evercore ISI reissued an in-line rating and issued a $133.00 price objective (up from $127.00) on shares of Boston Properties in a research note on Friday, October 6th. SunTrust Banks reissued a hold rating and issued a $130.00 price objective on shares of Boston Properties in a research note on Monday, October 9th. Jefferies Group reissued a hold rating and issued a $124.00 price objective on shares of Boston Properties in a research note on Tuesday, October 24th. Finally, Mizuho reissued a hold rating and issued a $122.00 price objective on shares of Boston Properties in a research note on Friday, November 3rd. Two research analysts have rated the stock with a sell rating, eight have given a hold rating and three have given a buy rating to the company. The company currently has an average rating of Hold and an average target price of $131.00.

Boston Properties (BXP) traded down $1.53 on Tuesday, reaching $122.33. 637,036 shares of the company traded hands, compared to its average volume of 798,978. The stock has a market capitalization of $19,110.00, a PE ratio of 38.11, a price-to-earnings-growth ratio of 3.60 and a beta of 0.63. Boston Properties has a 52 week low of $116.77 and a 52 week high of $140.13. The company has a quick ratio of 0.44, a current ratio of 0.44 and a debt-to-equity ratio of 0.92.

Boston Properties (NYSE:BXP) last posted its earnings results on Wednesday, November 1st. The real estate investment trust reported $1.57 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.54 by $0.03. The company had revenue of $657.70 million during the quarter, compared to analysts’ expectations of $649.84 million. Boston Properties had a net margin of 19.42% and a return on equity of 6.43%. Boston Properties’s quarterly revenue was up 5.2% on a year-over-year basis. During the same period last year, the company posted $1.42 earnings per share. analysts anticipate that Boston Properties will post 6.25 earnings per share for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, January 30th. Shareholders of record on Friday, December 29th will be paid a $0.80 dividend. This is a boost from Boston Properties’s previous quarterly dividend of $0.75. This represents a $3.20 dividend on an annualized basis and a dividend yield of 2.62%. The ex-dividend date is Thursday, December 28th. Boston Properties’s dividend payout ratio (DPR) is presently 99.69%.

In other news, insider Bryan J. Koop sold 5,868 shares of the firm’s stock in a transaction dated Wednesday, November 8th. The shares were sold at an average price of $124.55, for a total value of $730,859.40. Following the completion of the sale, the insider now owns 585 shares in the company, valued at approximately $72,861.75. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 0.86% of the company’s stock.

Several institutional investors have recently added to or reduced their stakes in BXP. Los Angeles Capital Management & Equity Research Inc. lifted its holdings in shares of Boston Properties by 4.8% in the 2nd quarter. Los Angeles Capital Management & Equity Research Inc. now owns 3,292 shares of the real estate investment trust’s stock worth $405,000 after acquiring an additional 150 shares during the last quarter. Schroder Investment Management Group lifted its holdings in shares of Boston Properties by 6.4% in the 2nd quarter. Schroder Investment Management Group now owns 17,157 shares of the real estate investment trust’s stock worth $2,113,000 after acquiring an additional 1,025 shares during the last quarter. Tredje AP fonden lifted its holdings in shares of Boston Properties by 4.0% in the 2nd quarter. Tredje AP fonden now owns 12,035 shares of the real estate investment trust’s stock worth $1,490,000 after acquiring an additional 460 shares during the last quarter. Commonwealth Bank of Australia lifted its holdings in shares of Boston Properties by 6.5% in the 2nd quarter. Commonwealth Bank of Australia now owns 2,077 shares of the real estate investment trust’s stock worth $254,000 after acquiring an additional 127 shares during the last quarter. Finally, Eaton Vance Management lifted its holdings in shares of Boston Properties by 3.4% in the 2nd quarter. Eaton Vance Management now owns 114,269 shares of the real estate investment trust’s stock worth $14,057,000 after acquiring an additional 3,760 shares during the last quarter. Hedge funds and other institutional investors own 95.22% of the company’s stock.

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Boston Properties Company Profile

Boston Properties, Inc is a real estate investment trust. The Company is an owner and developer of office properties in the United States. Its segments by geographic area are Boston, New York, San Francisco and Washington, DC. Its segments by property type include Office, Residential and Hotel. As of December 31, 2016, the Company owned or had interests in 174 commercial real estate properties, aggregating approximately 47.7 million net rentable square feet of primarily Class A office properties, including eight properties under construction/redevelopment totaling approximately 4.0 million net rentable square feet.

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