Is Prologis Inc. (PLD) A Risky Investment?

Prologis Inc. (NYSE:PLD) finished Thursday with an addition of $1.59 to close at $129.38, an upside of 1.24 percent. An average of 2,099,340 shares of common stock have been traded in the last five days. There was a gain of $3.95 in the past week. The last 20 days have seen an average of 2,510,850 shares traded, while the 50-day average volume stands at 2,318,974.

PLD stock has decreased by -6.61% in the last month. The company shares reached their 1-month lowest point of $123.90 on 09/28/21. With the stock rallying to its 52-week high on 09/08/21, shares of the company touched a low of $93.08 and a high of $139.60 in 52 weeks. In spite of this, the price is down -7.32% from the 52-week high.


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Insider Transactions

39 days have passed since Prologis Inc. (PLD) last reported insider trading activity. LYONS IRVING F III, who is Director, most recently acquired $24,000 shares at $133.53 per share on Aug 30. In this transaction, the insider spent $3,204,655. Director, KENNARD LYDIA H, disposed of 10,000 shares at a price of $118.00 on May 27. The insider now owns more than $1,180,000 worth of shares.

Valuation Metrics

Prologis Inc. (PLD) has a trailing price-to-earnings (P/E) ratio of 62.35, which compares with the 21.25 for the broader industry and 37.66 for the sector. This means investors are optimistic about the stock’s future prospects. In the last five years, Prologis Inc.’s PE ratio has ranged between 70.16 and 17.92. The stock’s beta is 0.76. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 21.12, the price-to-book (PB) ratio at 2.98, and the price-to-cash flow ratio at 84.94.

Prologis Inc. pays a $2.52 dividend per share annually. It offers a dividend yield of 1.95%. The company has a payout ratio of 115.80%. The company’s most recent quarterly dividend payment took place on Sep. 30, and it was $0.63 a share, without any change from last year. Its dividend has been increased for the last 8 consecutive years with the latest increase dividend $0.05 reported on Thursday February 25 2021. Dividends have grown by 31.82% each year over the last three years.

Prologis Inc. will next go ex-dividend on 20-Dec. The next dividend payment Prologis Inc. will make is expected to be $0.63.

Further, the company has a long term debt to equity ratio of 0.53 and a total debt to equity ratio of 0.53 For the recent quarter ending June 29. On the profitability front, the trailing 12-month gross margin is 73.30% against a 5-year average of 72.8%. Its gross profit as reported stood at $2.12 billion compared to revenue of $4.44 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Prologis Inc.’s return on assets was 2.80%, compared to 4.3% over the last five years. In the past year, the return on investment has been 2.20%, and the 5-year average is 5.8%. Meanwhile, the return on equity (ROE) for the past 12 months has been 4.80% and the 5-year average holds at 8.0%. For the broader industry, ROE averaged 7.37 over the past year.

Earnings Surprise

The analyst consensus anticipated Prologis Inc.’s latest quarter earnings to come in at $0.44 per share, but it turned out to be $0.81, a 84.10% surprise. For the recent quarter, EBITDA amounted to $1.06 billion. At the end of the quarter ending June 29, Prologis Inc.’s stock balance sheet showed total debt was $17.39 billion. Shareholders own equity worth $739.25 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Prologis Inc. (PLD) price momentum. RSI 9-day as of the close on 07 October was 55.01%, suggesting the stock is Neutral, with historical volatility in this time frame at 13.46%.

As of today, PLD’s price is $127.37 +3.15% or $3.95 from its 5-day moving average. PLD is currently trading -3.96% lower than its 20-day SMA and +13.30% higher than its 100-day SMA. However, the stock’s current price level is +1.37% above the SMA50 and +33.04% above the SMA200.

The stochastic %K and %D were 49.77% and 36.52%, respectively, and the average true range (ATR) was 2.41. With the 14-day stochastic at 76.32% and the average true range at 2.32, the RSI (14) stands at 50.16%. The stock has reached 1.14 on the 9-day MACD Oscillator while the 14-day reading was at 0.36.

Analyst Ratings

Evercore ISI downgraded Prologis Inc. (NYSE: PLD) to a an In-line rating in its most recent analyst report. Previously, the stock was rated as a an Outperform.The consensus rating for Prologis Inc. (PLD) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell PLD, while 7 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 15 others rate it as a “buy”.

What is PLD’s price target for the next 12 months?

Analysts predict a range of price targets between $132.00 and $166.00, with a median target of $144.00. Taking a look at these predictions, the average price target given by analysts for Prologis Inc. (PLD) stock is $145.18.

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