iStar Financial shares soared 12.9% in the last trading session to close at $24.94. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 12.5% loss over the past four weeks.
The raised investor optimism can be attributed to the news of the company’s agreement to sell a portfolio of its owned and managed net lease assets to an affiliate of Carlyle's Global Credit platform. The $3.07-billion deal is expected to close in the first quarter of 2022. The portfolio comprises 18.3 million square feet of institutional quality office, entertainment and industrial properties spanning throughout the country.
The sale underpins iStar’s corporate strategy of streamlining its portfolio and focusing on its ground lease business. The company will recognize total net positive impacts to both net income and common equity of nearly $525 million and to adjusted common equity of around $250 million. It also estimates to receive net cash proceeds worth nearly $1.1 billion (after the repayment of all associated mortgage debt and the full repayment of its secured term loan). Efforts to monetize net lease assets and strengthen its financials by an estimated $565-million net gain in first-quarter 2022, might have sparked an investor interest in the iStar stock.
This commercial real estate finance company is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of -13.3%. Revenues are expected to be $101.17 million, down 30.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For iStar, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on STAR going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Image: Bigstock
iStar (STAR) Surges 12.9%: Is This an Indication of Further Gains?
iStar Financial shares soared 12.9% in the last trading session to close at $24.94. The move was backed by solid volume with far more shares changing hands than in a normal session. This compares to the stock's 12.5% loss over the past four weeks.
The raised investor optimism can be attributed to the news of the company’s agreement to sell a portfolio of its owned and managed net lease assets to an affiliate of Carlyle's Global Credit platform. The $3.07-billion deal is expected to close in the first quarter of 2022. The portfolio comprises 18.3 million square feet of institutional quality office, entertainment and industrial properties spanning throughout the country.
The sale underpins iStar’s corporate strategy of streamlining its portfolio and focusing on its ground lease business. The company will recognize total net positive impacts to both net income and common equity of nearly $525 million and to adjusted common equity of around $250 million. It also estimates to receive net cash proceeds worth nearly $1.1 billion (after the repayment of all associated mortgage debt and the full repayment of its secured term loan). Efforts to monetize net lease assets and strengthen its financials by an estimated $565-million net gain in first-quarter 2022, might have sparked an investor interest in the iStar stock.
This commercial real estate finance company is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of -13.3%. Revenues are expected to be $101.17 million, down 30.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For iStar, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on STAR going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>