Spirit Realty Capital, Inc. (SRC) Moving Strangely: Should That Worry Traders?

A handful of technical analysis tools are suggesting that Spirit Realty Capital, Inc. (NYSE:SRC) overall gets 16% Sell rating. The stock is also flashing a Sell from the Barchart TrendSpotter trading system. Traders hoping to speculate on the SRC’s short-term trajectory should know that short terms indicators for the stock averaged 0% Hold with an average daily trading volume over the past 20 days at 5848435 shares. SRC stock has overall a 0.25% Buy signal considering medium term indicators and the 50-day average daily volume remained almost 5519846 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was 4805179 shares, is 67% Sell on the basis of long term indicators.

The share price is currently staying around the first support level of $7.55. Below this, the next support is placed in the zone of $7.21. Till the time, the SRC stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 54.74 on daily chart, which may remain a cause for concern. If the price breaks below $7.21 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $8.05 mark may result into a pull-back move towards $8.22 level.

Spirit Realty Capital, Inc. (SRC) is projected to climb by 19.42 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $10-month high price target. This represents a whopping 26.9 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $8.75, which represents a return potential of 11.04 percent when compared to the closing price of the stock of $7.88 on Thursday, December 06. The lowest price target for the stock is $8 — slightly more than 1.52 percent from SRC’s current share price.

Here’s a rundown of insider trading activity for sense of Spirit Realty Capital, Inc. (NYSE:SRC). The earliest insider trade took place on 11/30/2018. Hughes Michael C. gathered a total of 13.61 thousand shares of company at average share price of $7.35. The total for the purchase was set at $100 thousand. After this transaction, the EVP, CFO account balance stood at 104.73 thousand shares. The stock grew 7.21 percent since that insider purchase. On 11/16/2018, Hsieh Jackson, CEO and President, sold 214.79 thousand shares at a price per share of $7.85. This removed 1.69 million shares from the insider’s fortune and the stock saw a 0.38 percent rally in value since the news became public. This transaction left 967.47 thousand shares in the CEO and President account. On 06/12/2018, EVP – Asset Management Heimlich Kenneth performed a purchase transaction worth $24.65 thousand. This purchase at $7.95 each has added 3.1 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -0.88 percent decrease since the transaction was reported. The insider now is left with 58.6 thousand shares remaining in the account. Gilchrist Richard I, who performs the Director job, bought 7.5 thousand shares for $60 thousand. The acquisition occurred on 03/15/2018 was priced at $8 per share. The share price plunged -1.5 percent since the reporting date. Gilchrist Richard I now left with a stake of 67.93 thousand SRC stock worth $535.28 thousand after the insider buying.

SRC shares accumulated 0.12 points or 1.55 percent on Thursday to $7.88 with a heavy trade volume of 14.045 million shares. After opening the session at $7.53, the shares went as high as $7.89 and as low as $7.39, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $3.36 billion and now has 426.68 million shares outstanding. Spirit Realty Capital, Inc. (SRC) stock has lost -3.67 percent of market value in 21 trading days.

Analysts at Raymond James cut their rating on shares of Spirit Realty Capital, Inc. (NYSE:SRC) from Mkt Perform to Underperform in their opinion released on December 06. BofA/Merrill analysts have downgraded their rating of SRC stock from Neutral to Underperform in a separate flash note to investors on November 15. Analysts at BofA/Merrill downgraded the stock to a Neutral call from its previous Buy stance, in a research note that dated back to February 26.

SRC stock has a trailing 3-year beta of 0.41, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.22 a share in the trailing twelve months. The stock’s value has surged 2.49 percent year to date (YTD) against a rise of 5.06 percent in 12 month’s time. The company’s shares still trade -7.62 percent away from its 1-year high of $8.53 and 19.8 percent up from 52-week low of $6.58. The average consensus rating on the company is 2.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Spirit Realty Capital, Inc. (SRC) are trading at a P/E ratio of 34.16 times earnings reported for the past 12 months. The industry SRC operates in has an average P/E of 29.02. Its P/E ratio went as low as 102.7X and as high as 419.69 over the 5-year span. Further, it is sporting a 6.99 on the Price-to-Sales ratio. Compare this with the industry average P/S of 11.46. 94.7 percent is the gross profit margin for Spirit Realty Capital, Inc. and operating margin sits at 20.7 percent. Along with this, the net profit margin is 21.2 percent.

Analysts are forecasting revenue to suffer decline of -35.5 percent to $107M in the next fiscal quarter, while earnings are seen soaring by nearly 0 percent to $0.07 per share. History has shown that shares in Spirit Realty Capital, Inc. have gone down on 12 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.06 per share, better than the $0.05, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $110M, better than the $102M analysts expected. Earnings are estimated to increase by -80.7 percent this year, 18.14 percent next year and continue to increase by 37.47 percent annually for the next 5 years.