Extra Space Storage (NYSE:EXR) Trading Down 7.9% on Disappointing Earnings

Extra Space Storage Inc (NYSE:EXR) shares traded down 7.9% on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $137.93 and last traded at $137.55. 578,943 shares were traded during mid-day trading, a decline of 50% from the average session volume of 1,162,277 shares. The stock had previously closed at $149.34.

The real estate investment trust reported $2.05 earnings per share for the quarter, missing the consensus estimate of $2.06 by ($0.01). The firm had revenue of $841.62 million during the quarter, compared to analysts’ expectations of $719.43 million. Extra Space Storage had a return on equity of 6.67% and a net margin of 29.51%. The company’s revenue was up 3.8% compared to the same quarter last year. During the same period last year, the business posted $2.06 EPS.

Extra Space Storage Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Monday, June 16th were given a dividend of $1.62 per share. This represents a $6.48 dividend on an annualized basis and a yield of 4.8%. The ex-dividend date was Monday, June 16th. Extra Space Storage’s dividend payout ratio (DPR) is currently 150.35%.

Analyst Ratings Changes

A number of brokerages have weighed in on EXR. Evercore ISI increased their target price on shares of Extra Space Storage from $144.00 to $149.00 and gave the stock an “in-line” rating in a research report on Thursday, May 1st. JPMorgan Chase & Co. increased their target price on shares of Extra Space Storage from $160.00 to $162.00 and gave the stock a “neutral” rating in a research report on Friday, June 13th. Wells Fargo & Company cut their target price on Extra Space Storage from $165.00 to $160.00 and set an “equal weight” rating for the company in a research note on Wednesday, July 23rd. Scotiabank raised their target price on Extra Space Storage from $149.00 to $166.00 and gave the stock a “sector outperform” rating in a research note on Monday, May 12th. Finally, BNP Paribas Exane started coverage on Extra Space Storage in a research note on Tuesday, June 24th. They issued a “neutral” rating and a $156.00 target price for the company. Nine research analysts have rated the stock with a hold rating and seven have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $157.69.

Insider Activity

In other news, CEO Joseph D. Margolis sold 7,500 shares of Extra Space Storage stock in a transaction dated Tuesday, July 1st. The stock was sold at an average price of $150.35, for a total transaction of $1,127,625.00. Following the completion of the sale, the chief executive officer owned 27,260 shares in the company, valued at approximately $4,098,541. This trade represents a 21.58% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 0.96% of the company’s stock.

Institutional Trading of Extra Space Storage

Large investors have recently modified their holdings of the business. GKV Capital Management Co. Inc. bought a new stake in shares of Extra Space Storage during the 1st quarter valued at about $29,000. Chung Wu Investment Group LLC purchased a new position in shares of Extra Space Storage during the 2nd quarter valued at about $29,000. Zions Bancorporation National Association UT purchased a new position in shares of Extra Space Storage during the 1st quarter valued at about $50,000. Quarry LP raised its holdings in shares of Extra Space Storage by 156.1% during the 4th quarter. Quarry LP now owns 356 shares of the real estate investment trust’s stock valued at $53,000 after buying an additional 217 shares in the last quarter. Finally, Golden State Wealth Management LLC raised its holdings in shares of Extra Space Storage by 147.0% during the 1st quarter. Golden State Wealth Management LLC now owns 405 shares of the real estate investment trust’s stock valued at $60,000 after buying an additional 241 shares in the last quarter. Institutional investors own 99.11% of the company’s stock.

Extra Space Storage Trading Down 9.9%

The company has a market capitalization of $28.55 billion, a PE ratio of 29.19, a PEG ratio of 3.62 and a beta of 1.10. The company has a current ratio of 0.33, a quick ratio of 0.33 and a debt-to-equity ratio of 0.85. The stock has a fifty day moving average of $148.91 and a two-hundred day moving average of $148.39.

About Extra Space Storage

Extra Space Storage Inc, headquartered in Salt Lake City, Utah, is a self-administered and self-managed REIT and a member of the S&P 500. As of December 31, 2023, the Company owned and/or operated 3,714 self-storage stores in 42 states and Washington, DC The Company's stores comprise approximately 2.6 million units and approximately 283.0 million square feet of rentable space operating under the Extra Space, Life Storage and Storage Express brands.