Last Updated: 16 Sep 2024
Executive Summary
STAG Industrial Inc. (STAG) is a leading real estate investment trust (REIT) focused on the acquisition and operation of single-tenant industrial properties in the United States. As of the latest available data, the company has a market capitalization of $7.45 billion and trades on the NYSE under the ticker symbol STAG. The latest stock price is $40.04. STAG's strong fundamentals, including consistent revenue growth, stable earnings, and a healthy dividend yield, make it an attractive investment for income-oriented investors.
Company Overview
STAG Industrial was founded in 2011 and is headquartered in Boston, Massachusetts. The company's portfolio consists of over 550 industrial properties totaling approximately 110 million square feet. STAG's properties are primarily located in major distribution hubs and are leased to a diverse group of tenants, including e-commerce retailers, logistics providers, and manufacturers.
Fundamental Analysis
Revenue: STAG's revenue has grown steadily over the past several years, reaching $739.9 million in the trailing twelve months (TTM). The company's revenue growth is driven by the increasing demand for industrial space due to the rise of e-commerce and the need for efficient supply chain management.
Earnings: STAG's net income has also grown steadily, reaching $192.4 million in the TTM. The company's profit margin is 25.4%, which is higher than the industry average.
Dividend: STAG pays a quarterly dividend of $0.3675 per share, which equates to an annual dividend yield of 3.7%. The company has a history of increasing its dividend every year since its IPO in 2011.
Valuation: STAG's trailing price-to-earnings (P/E) ratio is 38.5, which is higher than the industry average. However, the company's strong fundamentals and growth prospects justify its premium valuation.
Technical Analysis
Trend: STAG's stock price has been trending higher over the past year. The stock has recently broken above its 200-day moving average, which is a bullish technical indicator.
Support and Resistance: The stock's immediate support level is at $39.50, while its immediate resistance level is at $41.50.
Moving Averages: The stock's 50-day moving average is currently at $39.33, while its 200-day moving average is at $37.47. Both moving averages are trending higher, which is a positive technical indicator.
Short Term Outlook
In the short term, STAG's stock price is expected to continue to trade within its current range between $39.50 and $41.50. The stock may experience some volatility in the near term due to market fluctuations, but its strong fundamentals should provide support.
Long Term Outlook
In the long term, STAG's stock price is expected to continue to appreciate as the demand for industrial space continues to grow. The company's strong management team, diversified portfolio, and commitment to dividend growth make it a solid long-term investment.
Analyst Recommendations
Analysts are generally bullish on STAG Industrial. The average analyst rating is "Buy" with a target price of $41.83. One analyst has a "Strong Buy" rating, three analysts have "Buy" ratings, eight analysts have "Hold" ratings, and one analyst has a "Sell" rating.
