Brixmor Property Group Inc (BRX) Stock Falls After Company Announces Tampering of Quarterly Statements


Shares of Brixmor Property Group Inc (NYSE:BRX) stock are down big this morning, after the company announced that its quarterly statements had been tampered with. This has resulted in the resignation of three of the company’s top officers, including their CEO Michael Carroll, CFO and President Michael Pappagallo and CAO Steven Splain. Additionally an accounting employee has also stepped down.

The tampering of the statements is said to have resulted in showing more consistent growth in same-property net operating income than really existed, which more than likely caused stock movement that may not have been warranted.

“The board is disappointed to have learned of the conduct and lack of appropriate management supervision uncovered as a result of the Audit Committee review,” explained Chairman John Schreiber.

The stock is down 16.77% or $4.43 following the news, hitting $21.99 per share. Approximately 389,975 shares traded hands. BRX shares have risen 13.98% since July 2, 2015 and are currently uptrending. It has outperformed the S&P500 by 21.28%.

From a total of 3 analysts covering Brixmor Property Group (NYSE:BRX) stock, 2 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 67% of the ratings are positive. The highest target price is $30 while the lowest target price is $27. The mean of all analyst targets is $28.20 which is 28.24% above today’s ($21.99) stock price. Brixmor Property Group was the topic of 7 analyst reports since August 7, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets maintained shares on October 29 with a “Outperform” rating. Zacks upgraded BRX stock in a recent report from August 7 to a “Hold” rating.

The institutional sentiment decreased to 1.38 in Q2 2015. It’s down 0.05, from 1.43 in 2015Q2. The ratio dived, as 27 funds sold all their Brixmor Property Group Inc shares they owned while 64 reduced their positions. 31 funds bought stakes while 95 increased their total positions. Institutions now own 314.75 million shares which is 5.80% more than the previous share count of 297.49 million in 2015Q2.

Blackstone Group L.P. holds 9.17% of its total portfolio in Brixmor Property Group Inc, equating to 121.56 million shares. Apg Asset Management Us Inc. owns 15.41 million shares representing 3.21% of their total US portfolio. Moreover, Security Capital Research & Management Inc has 2.63% of their total portfolio invested in the company, equating to 3.42 million shares. The California-based Adelante Capital Management Llc has a total of 1.48% of their portfolio invested in the stock. Lasalle Investment Management Securities Llc, a Maryland-based fund reported 4.76 million shares owned.

Since April 16, 2015, the stock had 1 buying transaction, and 1 insider sale for a total of $72,740 in net activity. Berman Michael B bought 91 shares worth $2,260. Siegel Steven F sold 3,000 shares worth $75,000. Carroll Michael A bought 8,691 shares worth $216,650.

Brixmor Property Group Inc. is an internally managed real estate investment trust (REIT). The company has a market cap of $6.51 billion. Brixmor Operating Partnership LP and subsidiaries (collectively, the Operating Partnership) is the entity through which BPG conducts its activities and owns its assets. It has 40.46 P/E ratio. BPG owns 100% of the common stock of BPG Subsidiary Inc. (BPG Sub), which is the sole member of Brixmor OP GP LLC (the General Partner), the sole general partner of the Operating Partnership.