Is Lexington Realty Trust (LXP) A Risky Investment?

Lexington Realty Trust (NYSE:LXP) finished Wednesday with an addition of $0.07 to close at $14.49, an upside of 0.49 percent. An average of 2,061,860 shares of common stock have been traded in the last five days. There was a gain of $0.89 in the past week. The last 20 days have seen an average of 2,307,665 shares traded, while the 50-day average volume stands at 2,007,214.

LXP stock has increased by 5.92% in the last month. The company shares reached their 1-month lowest point of $12.61 on 09/28/21. With the stock rallying to its 52-week high on 10/12/21, shares of the company touched a low of $9.82 and a high of $14.53 in 52 weeks. In spite of this, the price is down -0.31% from the 52-week high.


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Valuation Metrics

Lexington Realty Trust (LXP) has a trailing price-to-earnings (P/E) ratio of 15.82, which compares with the 21.25 for the broader industry and 38.25 for the sector. In the last five years, Lexington Realty Trust’s PE ratio has ranged between 156.83 and 7.25. The stock’s beta is 0.65. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 11.57, the price-to-book (PB) ratio at 2.07, and the price-to-cash flow ratio at 49.62.

Lexington Realty Trust pays a $0.43 dividend per share annually. It offers a dividend yield of 2.97%. The company has a payout ratio of 46.20%. The company’s most recent quarterly dividend payment was $0.1080 a share, representing a up of 0.46 from $0.1075 last year. Its dividend has been increased for the last 2 consecutive years with the latest increase dividend $0.0005 reported on Wednesday September 15 2021. Dividends have grown by -39.86% each year over the last three years.

Lexington Realty Trust will next go ex-dividend on 29-Nov-2021. The next dividend payment Lexington Realty Trust will make is expected to be $0.1075.

Further, the company has a long term debt to equity ratio of 0.76 and a total debt to equity ratio of 0.76 for the quarter ending June 29. On the profitability front, the trailing 12-month gross margin is 88.30% against a 5-year average of 44.1%. Its gross profit as reported stood at $96.57 million compared to revenue of $330.45 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Lexington Realty Trust’s return on assets was 7.10%, compared to 5.1% over the last five years. In the past year, the return on investment has been 3.20%, and the 5-year average is 7.9%. Meanwhile, the return on equity (ROE) for the past 12 months has been 13.50% and the 5-year average holds at 12.0%. For the broader industry, ROE averaged 7.37 over the past year.

Earnings Surprise

The analyst consensus anticipated Lexington Realty Trust’s latest quarter earnings to come in at $0.03 per share, but it turned out to be $0.26, a 766.70% surprise. For the quarter, EBITDA amounted to $18.96 million. At the end of the quarter ending June 29, Lexington Realty Trust’s stock balance sheet showed total debt was $1.5 billion. Shareholders own equity worth $277.67 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Lexington Realty Trust (LXP) price momentum. RSI 9-day as of the close on 13 October was 80.79%, suggesting the stock is Overbought, with historical volatility in this time frame at 11.05%.

As of today, LXP’s price is $14.20 +6.54% or $0.89 from its 5-day moving average. LXP is currently trading +6.23% higher than its 20-day SMA and +20.25% higher than its 100-day SMA. However, the stock’s current price level is +10.36% above the SMA50 and +32.45% above the SMA200.

The stochastic %K and %D were 96.83% and 95.79%, respectively, and the average true range (ATR) was 0.30. With the 14-day stochastic at 97.66% and the average true range at 0.28, the RSI (14) stands at 73.45%. The stock has reached 0.66 on the 9-day MACD Oscillator while the 14-day reading was at 0.97.

Analyst Ratings

KeyBanc Capital Markets upgraded Lexington Realty Trust (NYSE: LXP) to a an Overweight rating in its most recent analyst report. Previously, the stock was rated as a a Sector weight.The consensus rating for Lexington Realty Trust (LXP) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell LXP, while 1 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 3 others rate it as a “buy”.

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

Analysts predict a range of price targets between $11.00 and $16.00, with a median target of $15.00. Taking a look at these predictions, the average price target given by analysts for Lexington Realty Trust (LXP) stock is $14.60.

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