On September 5, 2023, Charles Schwab Investment Management Inc. announced a decrease in its position in shares of Spirit Realty Capital, Inc. As per the company’s most recent Form 13F filing with the Securities and Exchange Commission (SEC), Charles Schwab Investment Management Inc. reduced its stake by 0.2% during the first quarter. The fund now holds 2,103,413 shares of Spirit Realty Capital’s stock after selling 4,206 shares in the aforementioned period. This represents a valuation of $83,800,000.

It is important to note that Charles Schwab Investment Management Inc. currently owns approximately 1.49% of Spirit Realty Capital’s total worth. This information has been disclosed in their most recent filing with the Securities and Exchange Commission.

Additionally, Spirit Realty Capital recently made an announcement regarding its quarterly dividend payment. The company is set to distribute dividends on Friday, October 13th to shareholders of record as of Friday, September 29th. Shareholders will receive $0.6696 per share as a dividend amount, which indicates an increase from their previous payout of $0.66 per share for the same period.

The ex-dividend date for this new dividend payment has been set for Thursday, September 28th. For investors considering this opportunity, it should be noted that this equates to an annualized dividend amounting to $2.68 per share and a yield of approximately 6.93%.

However, it is crucial to highlight that Spirit Realty Capital’s payout ratio presently stands at an astonishingly high rate of 129.90%. While investors may appreciate receiving increased dividends, it is worth considering whether sustainably high payout ratios are feasible or if they may affect the company’s long-term growth strategies.

In conclusion, Charles Schwab Investment Management Inc.’s recent reduction in shares indicates a strategic decision towards diversification or reevaluation of the stock. Meanwhile, Spirit Realty Capital’s decision to increase its dividend payment presents an attractive opportunity for investors seeking income generation. However, potential investors should carefully analyze the company’s payout ratio and assess its impact on future growth prospects before making any investment decisions.

Institutional Investors and Hedge Funds Impact Ownership of Spirit Realty Capital’s Stock

Institutional investors and hedge funds have been actively buying and selling shares of Spirit Realty Capital, a real estate investment trust (REIT). Vanguard Group Inc. increased its stake in the company by 2.1% during the third quarter, now owning 19,953,334 shares worth $721,512,000. State Street Corp also raised its stake in Spirit Realty Capital by 1.1%, now owning 7,366,517 shares worth $271,012,000. Macquarie Group Ltd. and Daiwa Securities Group Inc. each lifted their stakes as well, while Cbre Investment Management Listed Real Assets LLC boosted its stake by an impressive 12.3%.

The involvement of these institutional investors and hedge funds has significantly impacted the ownership of Spirit Realty Capital’s stock. Hedge funds and institutional investors now hold an overwhelming 96.09% of the company’s stock.

However, despite this influx of interest from large-scale investors, several equities research analysts have recently taken a more reserved stance on the stock. Truist Financial lowered their price objective for Spirit Realty Capital from $46.00 to $45.00 in a research note on August 30th. StockNews.com initiated coverage on the company with a “hold” rating. BNP Paribas started coverage with an “underperform” rating alongside a target price of $42.00.

On a more positive note, Mizuho raised their target price from $40.00 to $41.00 and Stifel Nicolaus gave the company a “buy” rating with a new target price of $46.00.

It is important to note that these varied opinions from industry analysts have resulted in a consensus rating of “Hold” for Spirit Realty Capital according to data from Bloomberg. The average consensus price target for the stock currently stands at $42.88.

As for the stock’s performance itself, Spirit Realty Capital (NYSE:SRC) opened at $38.65 on the referenced date. Over the past year, it has experienced a range of $34.31 to $44.65. The company has a debt-to-equity ratio of 0.87, indicating a moderate level of leverage. It also boasts a quick ratio and current ratio of 1.05, suggesting good liquidity.

In terms of its moving averages, Spirit Realty Capital has recently shown stability with a fifty-day moving average of $39.62 and a two-hundred-day moving average of $39.48.

At present, Spirit Realty Capital holds a market capitalization value of $5.46 billion and a price-to-earnings ratio of 18.95, indicating the stock may be slightly undervalued relative to its earnings potential. Additionally, with a PEG ratio of 0.69 and beta coefficient of 1.25, the stock exhibits reasonable growth prospects coupled with moderate volatility.

Recent earnings data for Spirit Realty Capital reveals that it reported lower-than-expected earnings per share (EPS) of $0.36 for the quarter ending August 7th, missing analysts’ consensus estimates by ($0.50). This disappointment was attributed to various factors, including higher expenses compared to forecasts.

The company’s net margin remains healthy at 39.59%, while its return on equity stands at 6.69%. Revenue for the quarter reached $1 million, falling short against analysts’ expectations of approximately $187.23 million.

Despite this setback in earnings, industry analysts maintain an optimistic outlook for Spirit Realty Capital and anticipate it will post an EPS figure of 3.45 for the current financial year.

Overall, Spirit Realty Capital is experiencing an influx of interest from institutional investors and hedge funds while receiving mixed reviews from equities research analysts regarding its stock performance and outlook for future growth potential.

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