What To Hold: 3 Hold-Rated Dividend Stocks CPWR, FE, LXP
Lexington Realty (NYSE: LXP) shares currently have a dividend yield of 6.00%. Lexington Corporate Properties Trust operates as a self-managed and self-administered real estate investment trust (REIT). The company acquires, owns, and manages a portfolio of office, industrial, and retail properties net-leased to corporate tenants in the United States. The average volume for Lexington Realty has been 1,707,900 shares per day over the past 30 days. Lexington Realty has a market cap of $2.5 billion and is part of the real estate industry. Shares are up 8% year-to-date as of the close of trading on Tuesday. TheStreet Ratings rates Lexington Realty as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins. Highlights from the ratings report include:
- LXP's revenue growth has slightly outpaced the industry average of 6.8%. Since the same quarter one year prior, revenues rose by 14.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- In its most recent trading session, LXP has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
- LEXINGTON REALTY TRUST's earnings per share declined by 16.7% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, LEXINGTON REALTY TRUST swung to a loss, reporting -$0.15 versus $0.87 in the prior year. This year, the market expects an improvement in earnings ($0.28 versus -$0.15).
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, LEXINGTON REALTY TRUST's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for LEXINGTON REALTY TRUST is currently extremely low, coming in at 6.76%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -6.53% is significantly below that of the industry average.
- You can view the full Lexington Realty Ratings Report.
- Our dividend calendar.
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