Is DDR (NYSE:DDR) Now a Sell? Why did CapitalOne Downgrade The Stock?


DDR (NYSE:DDR) Receives a Downgrade

The Equity Rating of DDR (NYSE:DDR) rating was cut by investment analysts at CapitalOne from the previous “Overweight” rating to a “Equal Weight” rating in an analyst research report revealed to clients on Monday, 21 December.

From a total of 15 analysts covering Developers Diversified Realty (NYSE:DDR) stock, 0 rate it a ”Buy”, 0 a “Sell”, and 0 a ”Hold”. This means that NaN of the ratings are positive. The highest target price is $21 while the lowest target price is $17. The mean of all analyst targets is $18.67 with a 9.76% above today’s ($16.59) stock price. Developers Diversified Realty was the topic of 8 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. Evercore maintained shares on September 8 with “Hold” rating. RBC Capital Markets maintained DDR stock in a recent report from August 3 with “Sector Perform” rating. Finally, Canaccord Genuity initiated the stock with “Hold” rating in a report issued on a July 22.

Approximately 1.04 million shares of stock traded hands. DDR Corp (NYSE:DDR) has declined 5.94% since May 18, 2015 and is downtrending. It has underperformed by 0.13% the S&P500.

The overall sentiment of institutions has increased to 1.14 in Q2 2015. Its up 0.27, from 0.87 in 2015Q2. The ratio increased, as 24 institutions have sold all the shares of DDR Corp that they owned while 71 funds have taken shares off the table. 21 funds have purchased shares for the first time while 87 added to their positions. These institutions now hold 342.29 million shares or 4.32% more than the 328.10 million shares they owned in 2015Q2.

The Fund Long Pond Capital Lp currently is holding shares equating to 4.21% of its total portfolio in DDR Corp representing a total of 6.32 million shares. Another fund,Real Estate Management Services Llc, is holding a total of 1.41 million shares equating to 3.35% of their holdings. Additionally, Security Capital Research & Management Inc has a 6.60 million share stake in DDR Corp which represents 3.33% of their total portfolio. The Fund, Cohen & Steers Inc, based out of New York, has also built up a stake in the stock, which represents a total of 2.93% of their total portfolio. Finally Daiwa Securities Group Inc., a fund which is based in the state of Japan reported a total holdings of 22.91 million shares.

DDR Corp. is a self-administered and self-managed real estate investment trust (REIT). The company has a market cap of $6.01 billion. The Firm is in the business of acquiring, owning, developing, redeveloping, expanding, leasing and managing shopping centers. It currently has negative earnings. In addition, the Company engages in the origination and acquisition of loans and debt securities, which are generally collateralized directly or indirectly by shopping centers.

According to Zacks Investment Research, “DDR Corp. is a real estate investment trust that owns and manages retail properties in the continental United States, Puerto Rico and Brazil. Its portfolio primarily features shopping centers. DDR Corp. is headquartered in Beachwood, Ohio.”