Morgan Stanley Lowers Price Target for Paramount Group

Analysts at Morgan Stanley have revised their price target for Paramount Group (NYSE:PGRE) from $4.25 to $4.00. This adjustment was detailed in a research note released on Tuesday. The firm currently holds an "equal weight" rating on the company, implying that they believe the stock will perform in line with the overall market. At the new target price, there is an anticipated downside of approximately 3.26% compared to the stock's closing price prior to this announcement.

In a separate report, Mizuho also adjusted their expectations for Paramount Group, lowering their price target from $6.00 to $5.00 while maintaining an "outperform" rating. The overall analyst sentiment about the stock shows mixed opinions, with one research analyst giving it a sell rating, three rating it hold, and another assigning a buy rating. According to data from MarketBeat, the consensus rating for Paramount Group is a "Hold," with an average price target of $4.50.

Current Stock Performance

On Tuesday, shares of Paramount Group experienced a slight increase of 0.6%, trading up by $0.03 to reach $4.14. During the mid-day trading session, the company recorded a trading volume of 352,302 shares, which is lower than its average volume of 968,110. Paramount Group has a debt-to-equity ratio of 0.91, a current ratio and a quick ratio both standing at 4.45. The stock's fifty-day moving average price is noted at $4.57, while its 200-day moving average is around $4.82. The company's current market capitalization sits at approximately $899.48 million.

Recent Earnings Report

The last quarterly earnings report for Paramount Group was released on February 27th, where the company reported earnings per share (EPS) of $0.19 for the quarter, surpassing analysts' expectations of $0.17 by a small margin. Despite the better-than-expected earnings, Paramount Group posted a negative net margin of 27.92% and a negative return on equity of 5.26%. The firm's revenue during the quarter amounted to $186.27 million, outperforming forecasts that estimated it at $180.41 million. Analysts predict that the company will realize an EPS of 0.78 for the current fiscal year.

Institutional Investment Activity

Recent trading shows that several institutional investors and hedge funds have adjusted their holdings in Paramount Group. Notable changes include Metis Global Partners LLC, which raised its stake in the company by 38.8% during the third quarter, acquiring an additional 5,039 shares for a total of 18,020 shares valued at around $89,000. Connor Clark & Lunn Investment Management Ltd. saw a significant increase of 782.7%, gaining 316,399 shares to own 356,825 shares in total, valuing around $1,756,000. Other firms like Intech Investment Management LLC and Algert Global LLC also increased their stakes, contributing to the overall institutional ownership, which is now at 65.64% of the company’s stock.

Company Overview

Paramount Group, Inc. is a fully-integrated real estate investment trust that specializes in owning, operating, and managing elite Class A office properties in strategic central business districts, particularly in New York and San Francisco. The company aims to maximize its portfolio value by leveraging its prime locations and effective property management strategies to attract and retain desirable tenants.

Morgan, Stanley, Paramount