Is Prologis, Inc. (PLD) Soaring Insider Trading Sending a Signal?

The exact reason why investors have been taking down Prologis, Inc. (NYSE:PLD) stock at a frenetic pace might seem like a bit of a head-scratcher at the moment, but that’s only if you are buying the stock for the wrong reasons. On 14 March, the shares dropped -0.6 points or -0.83 percent at $71.78 with a light trade volume of 2.226 million shares. After opening the session at $71.94, the shares went as high as $72.03 and as low as $71.23, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $45 billion and now has 626.56 million shares outstanding. Prologis, Inc. (PLD) stock has gained 1.67 percent of market value in 21 trading days.

PLD stock has a trailing 3-year beta of 1.05, 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 $3.01 a share in the trailing twelve months. The stock’s value has surged 22.24 percent year to date (YTD) against a rise of 13.27 percent in 12 month’s time. The company’s shares still trade -1.43 percent away from its 1-year high of $72.82 and 30.01 percent up from 52-week low of $55.21. The average consensus rating on the company is 1.9, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Prologis, Inc. (PLD) will probably climb 0.57 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $83-month high price target. This represents a whopping 15.63 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $72, which represents a return potential of 0.31 percent when compared to the closing price of the stock of $71.78 on Thursday, March 14. The lowest price target for the stock is $65 — slightly more than -9.45 percent from PLD’s current share price.

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. Investors will get their next glimpse of PLD’s Q1 earnings on April 16. Analysts are forecasting revenue to climb 26.7 percent to $704M in the fiscal first quarter, while earnings are seen soaring by nearly -55.88 percent to $0.3 per share. 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 0.1 percent this year, 4.75 percent next year and continue to increase by -6.05 percent annually for the next 5 years.

The stock is currently hovering around the first support level of $71.33. Below this, the next support is placed in the zone of $70.88. Till the time, the PLD stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 65.49 on daily chart, which may remain a cause for concern. If the price breaks below $70.88 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $72.13 mark may result into a pull-back move towards $72.48 level.

Shares of Prologis, Inc. (PLD) are trading at a P/E ratio of 24.06 times earnings reported for the past 12 months. The industry PLD operates in has an average P/E of 29.09. Its P/E ratio went as low as 19.2X and as high as 35.02 over the 5-year span.Further, it is sporting a 16.04 on the Price-to-Sales ratio. Compare this with the industry average P/S of 11.66. 73 percent is the gross profit margin for Prologis, Inc. and operating margin sits at 30.1 percent. Along with this, the net profit margin is 58.6 percent.