Is Simon Property Stock Underperforming the Nasdaq?

Indianapolis, Indiana-based Simon Property Group, Inc. (SPG) is a self-administered and self-managed real estate investment trust (REIT). Valued at $67.8 billion by market cap, the company owns, develops, and manages retail real estate properties including regional malls, outlet centers, community/lifestyle centers, and international properties.

Companies worth $10 billion or more are generally described as “large-cap stocks,” and SPG perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the REIT - retail industry. SPG boasts a robust portfolio of 230 properties, with strategic investments and international joint ventures, positioning it for global growth and diversified revenue streams.

Despite its notable strength, SPG slipped 12.2% from its 52-week high of $238.50, achieved on Jul. 29. Over the past three months, SPG stock gained 1.6%, outperforming the Nasdaq Composite’s ($NASX) 1.2% dip during the same time frame.

Shares of SPG rose 13.1% on a YTD basis and climbed 15.4% over the past 52 weeks, underperforming NASX’s 14.1% YTD gains and 22.1% returns over the last year.

To confirm the bullish trend, SPG has been trading above its 200-day moving average over the past year, with slight fluctuations. However, the stock has been trading below its 50-day moving average since early August, with minor fluctuations.

On Aug. 10, SPG shares closed down more than 1% after reporting its Q2 results. Its FFO of $3.29 per share surpassed Wall Street expectations of $3.18 per share. The company’s revenue stood at $1 billion, up 19.6% year over year. SPG expects full-year FFO in the range of $13.20 to $13.30 per share. 

SPG’s rival, Regency Centers Corporation (REG) shares lagged behind the stock, with a 9% uptick on a YTD basis and 3% returns over the past 52 weeks.

Wall Street analysts are reasonably bullish on SPG’s prospects. The stock has a consensus “Moderate Buy” rating from the 21 analysts covering it, and the mean price target of $236.35 suggests a potential upside of 12.8% from current price levels.

On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.