Insider Activity Casts a Cloud Over Brixmor Property Group Inc. (BRX)

Despite closing -0.2 points lower on 12 February, Brixmor Property Group Inc. (NYSE:BRX) remains a key investment for many, but the stock is also a popular trading vehicle. Here’s how to trade it using charts and trading levels Wednesday. The shares dropped -1.12 percent at $17.67 with a light trade volume of 4.354 million shares. After opening the session at $17.9, the shares went as high as $17.95 and as low as $17.51, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $5.34 billion and now has 302.17 million shares outstanding. Brixmor Property Group Inc. (BRX) stock has gained 12.05 percent of market value in 21 trading days.

BRX stock has a trailing 3-year beta of 0.75, 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 $1.18 a share in the trailing twelve months. The stock’s value has surged 20.29 percent year to date (YTD) against a rise of 24.17 percent in 12 month’s time. The company’s shares still trade -5.56 percent away from its 1-year high of $18.71 and 27.67 percent up from 52-week low of $13.84. The average consensus rating on the company is 2.4, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Brixmor Property Group Inc. (BRX) will probably climb 1.7 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $21 price as 12-month high target. This represents a whopping 18.85 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $18, which represents a return potential of 1.87 percent when compared to the closing price of the stock of $17.67 on Tuesday, February 12. The lowest price target for the stock is $16 — slightly more than -9.45 percent from BRX’s current share price.

History has shown that shares in Brixmor Property Group Inc. have gone up on 13 different earnings reaction days and are predicted to add 0.01 percent when the company reports upcoming earnings. Analysts are forecasting revenue to suffer decline of -7.2 percent to $297M in the fiscal fourth quarter, while earnings are seen soaring by nearly -30.43 percent to $0.16 per share. It earned $0.49 per share, better than the $0.14, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $298M, better than the $297M analysts expected. Earnings are estimated to increase by 7.9 percent this year, -23.16 percent next year and continue to increase by -5.09 percent annually for the next 5 years.

Let’s take a look at some insider activity at Brixmor Property Group Inc. (NYSE:BRX) and see the pattern. The earliest insider trade took place on 05/23/2018. Crosland Sheryl Maxwell gathered a total of 1.59 thousand shares of company at average share price of $15.23. The total for the purchase was set at $24.22 thousand. After this transaction, the Director account balance stood at 11.59 thousand shares. The stock grew 16.02 percent since that insider purchase. On 05/09/2018, Schreiber John, Director, purchased 10 thousand shares at a price per share of $14.64. This added 146.4 thousand shares to the insider’s fortune and the stock saw a 20.7 percent rally in value since the news became public. This transaction left 55 thousand shares in the Director account.

On 05/04/2018, President & CEO Taylor James M Jr performed a purchase transaction worth $168.48 thousand. This purchase at $14.65 each has added 11.5 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded 20.61 percent increase since the transaction was reported. The insider now is left with 228.38 thousand shares remaining in the account. Taylor James M Jr, who performs the President & CEO job, bought 7.5 thousand shares for $116.63 thousand. The acquisition occurred on 03/13/2018 was priced at $15.55 per share. The share price soared 13.63 percent since the reporting date. Taylor James M Jr now left with a stake of 216.88 thousand BRX stock worth $3.83 million after the insider buying.

The stock is currently hovering around the first support level of $17.47. Below this, the next support is placed in the zone of $17.26. Till the time, the BRX stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 67.14 on daily chart, which may remain a cause for concern. If the price breaks below $17.26 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $17.91 mark may result into a pull-back move towards $18.15 level.

Shares of Brixmor Property Group Inc. (BRX) are trading at a P/E ratio of 15.12 times earnings reported for the past 12 months. The industry BRX operates in has an average P/E of 28.48. Its P/E ratio went as low as 18.97X and as high as 69.74 over the 5-year span.Further, it is sporting a 4.25 on the Price-to-Sales ratio. Compare this with the industry average P/S of 11.43. 74.9 percent is the gross profit margin for Brixmor Property Group Inc. and operating margin sits at 32 percent. Along with this, the net profit margin is 27.8 percent.