Why I’m Kicking Myself For Missing Out On Prologis, Inc. (PLD)?

The exact reason why investors have been taking up Prologis, Inc. (NYSE:PLD) stock at a frenetic pace might seem like a bit of a head-scratcher at the moment, but that’s only if you are buying the stock for the wrong reasons. On 06 December, the shares accumulated 1.62 points or 2.42 percent at $68.48 with a heavy trade volume of 4.199 million shares. After opening the session at $66.28, the shares went as high as $68.8 and as low as $64.64, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $43 billion and now has 628.03 million shares outstanding. Prologis, Inc. (PLD) stock has gained 5.24 percent of market value in 21 trading days.

PLD stock has a trailing 3-year beta of 0.77, 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 $2.45 a share in the trailing twelve months. The stock’s value has surged 6.15 percent year to date (YTD) against a rise of 6.27 percent in 12 month’s time. The company’s shares still trade -0.68 percent away from its 1-year high of $68.95 and 17.5 percent up from 52-week low of $58.28. The average consensus rating on the company is 1.9, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Prologis, Inc. (PLD) will probably climb 4.37 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $83-month high price target. This represents a whopping 21.2 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $70, which represents a return potential of 2.22 percent when compared to the closing price of the stock of $68.48 on Thursday, December 06. The lowest price target for the stock is $66 — slightly more than -3.62 percent from PLD’s current share price.

History has shown that shares in Prologis, Inc. have gone up on 18 different earnings reaction days and are predicted to add 0.01 percent when the company reports upcoming earnings. Investors will get their next glimpse of PLD’s Q4 earnings on January 22. Analysts are forecasting revenue to climb 6.2 percent to $658M in the fiscal fourth quarter, while earnings are seen soaring by nearly -23.64 percent to $0.42 per share. It earned $0.6 per share, better than the $0.35, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $609M, better than the $577M analysts expected. Earnings are estimated to increase by 34.7 percent this year, -20.25 percent next year and continue to increase by -6.05 percent annually for the next 5 years.

Let’s take a look at some insider activity at Prologis, Inc. (NYSE:PLD) and see the pattern. The earliest insider trade took place on 11/09/2018. Hawkins Philip L parted with a total of 15 thousand shares of company at average share price of $67.23. The total for the sales was set at $1.01 million. After this transaction, the Director account balance stood at 59.51 thousand shares. The stock grew 1.86 percent since that insider sale. On 09/28/2018, Lyons Irving F Iii, Director, purchased 0.07 thousand shares at a price per share of $66.89. This added 4.75 thousand shares to the insider’s fortune and the stock saw a 2.38 percent rally in value since the news became public. This transaction left 121.75 thousand shares in the Director account.

On 09/21/2018, Chief Legal Off./Gen. Counsel Nekritz Edward S performed a sale transaction worth $1.22 million. This sale at $67.66 each has eliminated 18.1 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 1.21 percent increase since the transaction was reported. The insider now is left with 107.78 thousand shares remaining in the account. Reilly Eugene F, who performs the CEO, The Americas job, sold 15 thousand shares for $1.01 million. The disposal occurred on 09/20/2018 was priced at $67.2 per share. The share price soared 1.9 percent since the reporting date. Reilly Eugene F now left with a stake of 39.5 thousand PLD stock worth $2.7 million after the insider selling.

The stock is currently hovering around the first support level of $65.81. Below this, the next support is placed in the zone of $63.15. Till the time, the PLD stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 58 on daily chart, which may remain a cause for concern. If the price breaks below $63.15 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $69.97 mark may result into a pull-back move towards $71.47 level.

Shares of Prologis, Inc. (PLD) are trading at a P/E ratio of 27.25 times earnings reported for the past 12 months. The industry PLD operates in has an average P/E of 29.02. Its P/E ratio went as low as 21.1X and as high as 92.96 over the 5-year span.Further, it is sporting a 16.43 on the Price-to-Sales ratio. Compare this with the industry average P/S of 11.46. 72.7 percent is the gross profit margin for Prologis, Inc. and operating margin sits at 27.7 percent. Along with this, the net profit margin is 51.3 percent.