Fintel reports that on August 15, 2023, Goldman Sachs maintained coverage of Hudson Pacific Properties (NYSE:HPP) with a Sell recommendation.

Analyst Price Forecast Suggests 7.50% Downside

As of August 2, 2023, the average one-year price target for Hudson Pacific Properties is 5.76. The forecasts range from a low of 4.04 to a high of $10.50. The average price target represents a decrease of 7.50% from its latest reported closing price of 6.23.

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The projected annual revenue for Hudson Pacific Properties is 1,075MM, an increase of 4.87%. The projected annual non-GAAP EPS is -0.04.

Hudson Pacific Properties Declares $0.12 Dividend

On June 9, 2023 the company declared a regular quarterly dividend of $0.12 per share ($0.50 annualized). Shareholders of record as of June 20, 2023 received the payment on June 30, 2023. Previously, the company paid $0.25 per share.

At the current share price of $6.23 / share, the stock’s dividend yield is 8.03%.

Looking back five years and taking a sample every week, the average dividend yield has been 5.58%, the lowest has been 2.65%, and the highest has been 23.04%. The standard deviation of yields is 4.46 (n=236).

The current dividend yield is 0.55 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is -2.21. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company has not increased its dividend in the last three years.

What is the Fund Sentiment?

There are 509 funds or institutions reporting positions in Hudson Pacific Properties. This is a decrease of 32 owner(s) or 5.91% in the last quarter. Average portfolio weight of all funds dedicated to HPP is 0.09%, a decrease of 17.18%. Total shares owned by institutions decreased in the last three months by 2.00% to 153,429K shares. The put/call ratio of HPP is 1.50, indicating a bearish outlook.

What are Other Shareholders Doing?

IJR – iShares Core S&P Small-Cap ETF holds 9,361K shares representing 6.65% ownership of the company. In it’s prior filing, the firm reported owning 9,504K shares, representing a decrease of 1.52%. The firm decreased its portfolio allocation in HPP by 34.59% over the last quarter.

VGSIX – Vanguard Real Estate Index Fund Investor Shares holds 6,201K shares representing 4.41% ownership of the company. In it’s prior filing, the firm reported owning 6,319K shares, representing a decrease of 1.91%. The firm decreased its portfolio allocation in HPP by 46.92% over the last quarter.

Prudential Financial holds 5,691K shares representing 4.04% ownership of the company. In it’s prior filing, the firm reported owning 1,556K shares, representing an increase of 72.65%. The firm decreased its portfolio allocation in HPP by 27.11% over the last quarter.

Point72 Asset Management holds 4,433K shares representing 3.15% ownership of the company. In it’s prior filing, the firm reported owning 41K shares, representing an increase of 99.07%. The firm increased its portfolio allocation in HPP by 6,468.58% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 4,400K shares representing 3.13% ownership of the company. In it’s prior filing, the firm reported owning 4,371K shares, representing an increase of 0.66%. The firm decreased its portfolio allocation in HPP by 36.48% over the last quarter.

Hudson Pacific Properties Background Information
(This description is provided by the company.)

Hudson Pacific is a real estate investment trust with a portfolio of office and studio properties totaling nearly 20 million square feet, including land for development. Focused on premier West Coast epicenters of innovation, media and technology, its anchor tenants include Fortune 500 and leading growth companies such as Netflix, Google, Square, Uber, NFL Enterprises and more. Hudson Pacific is a component of the S&P MidCap 400 Index.

This article originally appeared on Fintel

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