Prologis, Inc. (PLD): A Value Gem With Upside Catalysts

A handful of technical analysis tools are suggesting that Prologis, Inc. (NYSE:PLD) overall gets 80% Buy rating. The stock is also flashing a Buy from the Barchart TrendSpotter trading system. Traders hoping to speculate on the PLD’s short-term trajectory should know that short terms indicators for the stock averaged 80% Buy with an average daily trading volume over the past 20 days at 2786725 shares. PLD stock has overall a 1% Buy signal considering medium term indicators and the 50-day average daily volume remained almost 2945790 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was 2826184 shares, is 33% Buy on the basis of long term indicators.

The share price is currently staying around the first support level of $70.68. Below this, the next support is placed in the zone of $70.32. Till the time, the PLD stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 73.12 on daily chart, which may remain a cause for concern. If the price breaks below $70.32 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $71.35 mark may result into a pull-back move towards $71.65 level.

Prologis, Inc. (PLD) is projected to climb by -0.46 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $77 price as 12-month high target. This represents a whopping 8.39 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $71, which represents a return potential of -0.06 percent when compared to the closing price of the stock of $71.04 on Monday, February 11. The lowest price target for the stock is $65 — slightly more than -8.5 percent from PLD’s current share price.

Here’s a rundown of insider trading activity for sense of Prologis, Inc. (NYSE:PLD). The earliest insider trade took place on 02/07/2019. Kennard Lydia H parted with a total of 14.38 thousand shares of company at average share price of $70.24. The total for the sales was set at $1.01 million. After this transaction, the Director account balance stood at 32.32 thousand shares. The stock grew 1.14 percent since that insider sale. On 02/06/2019, Skelton Jeffrey L, Director, sold 14.38 thousand shares at a price per share of $69.42. This removed 998.26 thousand shares from the insider’s fortune and the stock saw a 2.33 percent rally in value since the news became public. This transaction left 44.09 thousand shares in the Director account. On 01/30/2019, Chief Legal Off./Gen. Counsel Nekritz Edward S performed a sale transaction worth $2.22 million. This sale at $68.32 each has eliminated 32.5 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 3.98 percent increase since the transaction was reported. The insider now is left with 69.56 thousand shares remaining in the account. Hawkins Philip L, who performs the Director job, sold 15 thousand shares for $1.02 million. The disposal occurred on 01/30/2019 was priced at $68.2 per share. The share price soared 4.16 percent since the reporting date. Hawkins Philip L now left with a stake of 44.51 thousand PLD stock worth $3.16 million after the insider selling.

PLD shares accumulated 0.21 points or 0.3 percent on Monday to $71.04 with a light trade volume of 2.203 million shares. After opening the session at $70.85, the shares went as high as $71.29 and as low as $70.63, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $44.5 billion and now has 625.97 million shares outstanding. Prologis, Inc. (PLD) stock has gained 13.88 percent of market value in 21 trading days.

Analysts at Deutsche Bank upped their rating on shares of Prologis, Inc. (NYSE:PLD) from Hold to Buy in their opinion released on December 18. Jefferies analysts bumped their recommendation on PLD stock from Hold to Buy in a separate flash note to investors on April 12. Analysts at Citigroup issued an upgrade from Neutral to Buy for the stock, in a research note that dated back to April 06.

PLD stock has a trailing 3-year beta of 1.06, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.81 a share in the trailing twelve months. The stock’s value has surged 20.98 percent year to date (YTD) against a rise of 21.79 percent in 12 month’s time. The company’s shares still trade 0.21 percent away from its 1-year high of $70.89 and 28.67 percent up from 52-week low of $55.21. The average consensus rating on the company is 1.8, 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 Prologis, Inc. (PLD) are trading at a P/E ratio of 25.21 times earnings reported for the past 12 months. The industry PLD operates in has an average P/E of 28.43. Its P/E ratio went as low as 21.09X and as high as 35.02 over the 5-year span. Further, it is sporting a 15.86 on the Price-to-Sales ratio. Compare this with the industry average P/S of 11.43. 73 percent is the gross profit margin for Prologis, Inc. and operating margin sits at 25.7 percent. Along with this, the net profit margin is 66.8 percent.

PLD will be declaring its Q1 financial results on April 16. Analysts are forecasting revenue to climb 27 percent to $706M in the next fiscal quarter, while earnings are seen soaring by nearly -55.88 percent to $0.3 per share. History has shown that shares in Prologis, Inc. have gone up on 19 different earnings reaction days and are predicted to add 0.01 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.94 per share, better than the $0.42, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $679M, worse than the $681M analysts expected. Earnings are estimated to increase by 34.7 percent this year, 5.14 percent next year and continue to increase by -6.05 percent annually for the next 5 years.