Is VEREIT, Inc. (VER) Being Underestimated by Analysts?

Analysts at Robert W. Baird, assumed coverage of VEREIT, Inc. (NYSE:VER) with Outperform recommendation, according to their opinion released on October 23. Evercore ISI analysts have downgraded their rating of VER stock from Outperform to In-line in a separate flash note to investors on May 21. Analysts at JMP Securities issued an upgrade from Mkt Perform to Mkt Outperform for the stock, in a research note that dated back to January 09.

By watching the trading activity of corporate insiders, it will become easier to get a sense of VEREIT, Inc. (NYSE:VER)’s prospects. The earliest insider trade took place on 08/07/2018. Brandon Gavin parted with a total of 20.88 thousand shares of company at average share price of $7.68. The total for the sales was set at $160.34 thousand. After this transaction, the SVP & Chief Accounting Officer account balance stood at 21.21 thousand shares. The stock lost -1.43 percent since that insider sale. On 05/22/2017, Miller William Craig Jr.,, purchased 12.73 thousand shares at a price per share of $7.86. This added 100.02 thousand shares to the insider’s fortune and the stock saw a -3.69 percent retreat in value since the news became public. This transaction left 223.38 thousand shares in the account. On 05/17/2017, Mcdowell Paul H performed a purchase transaction worth $52.57 thousand. This purchase at $7.51 each has added 7 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded 0.8 percent increase since the transaction was reported. The insider now is left with 289.4 thousand shares remaining in the account. Richardson Julie, who performs the Director job, bought 15 thousand shares for $111.9 thousand. The acquisition occurred on 05/16/2017 was priced at $7.46 per share. The share price soared 1.47 percent since the reporting date. Richardson Julie now left with a stake of 70.83 thousand VER stock worth $536.17 thousand after the insider buying.

VEREIT, Inc. (VER) is expected to jump by 10.44 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $9-month high price target. This represents a whopping 18.89 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $9, which represents a return potential of 18.89 percent when compared to the closing price of the stock of $7.57 on Friday, January 11. The lowest price target for the stock is $7 — slightly more than -7.53 percent from VER’s current share price.

The shares are currently floating around the first support level of $7.52. Below this, the next support is placed in the zone of $7.48. Till the time, the VER stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 54.58 on daily chart, which may remain a cause for concern. If the price breaks below $7.48 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $7.6 mark may result into a pull-back move towards $7.64 level.

VER shares accumulated 0.02 points or 0.26 percent on Friday to $7.57 with a light trade volume of 5.134 million shares. After opening the session at $7.52, the shares went as high as $7.59 and as low as $7.51, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $7.33 billion and now has 967.8 million shares outstanding. VEREIT, Inc. (VER) stock has lost -2.95 percent of market value in 21 trading days.

VER stock has a trailing 3-year beta of 0.65, 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 -$0.2 a share in the trailing twelve months. The stock’s value has surged 5.87 percent year to date (YTD) against a rise of 0.8 percent in 12 month’s time. The company’s shares still trade -5.37 percent away from its 1-year high of $8.00 and 16.1 percent up from 52-week low of $6.52. The average consensus rating on the company is 0, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of VEREIT, Inc. (VER) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry VER operates in has an average P/E of 32.49. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 5.81 on the Price-to-Sales ratio. Compare this with the industry average P/S of 10.23. 90 percent is the gross profit margin for VEREIT, Inc. and operating margin sits at 0 percent. Along with this, the net profit margin is 0 percent.