Fmr Cuts Stake in CubeSmart (CUBE)

Fintel reports that Fmr has filed a 13G/A form with the SEC disclosing ownership of 19.50MM shares of CubeSmart (CUBE). This represents 8.683% of the company.

In their previous filing dated February 9, 2022 they reported 20.54MM shares and 9.39% of the company, a decrease in shares of 5.05% and a decrease in total ownership of 0.70% (calculated as current - previous percent ownership).

Analyst Price Forecast Suggests 0.76% Upside

As of February 8, 2023, the average one-year price target for CubeSmart is $47.94. The forecasts range from a low of $41.41 to a high of $57.75. The average price target represents an increase of 0.76% from its latest reported closing price of $47.58.

The projected annual revenue for CubeSmart is $1,101MM, an increase of 13.15%. The projected annual EPS is $1.30, an increase of 13.00%.

What is the Fund Sentiment?

There are 808 funds or institutions reporting positions in CubeSmart. This is a decrease of 26 owner(s) or 3.12% in the last quarter. Average portfolio weight of all funds dedicated to CUBE is 0.46%, a decrease of 0.02%. Total shares owned by institutions increased in the last three months by 1.21% to 258,701K shares. The put/call ratio of CUBE is 0.21, indicating a bullish outlook.

What are large shareholders doing?

Principal Financial Group holds 12,611K shares representing 5.62% ownership of the company. In it's prior filing, the firm reported owning 12,349K shares, representing an increase of 2.07%. The firm increased its portfolio allocation in CUBE by 2.86% over the last quarter.

VGSIX - Vanguard Real Estate Index Fund Investor Shares holds 10,177K shares representing 4.53% ownership of the company. In it's prior filing, the firm reported owning 10,272K shares, representing a decrease of 0.94%. The firm increased its portfolio allocation in CUBE by 8.90% over the last quarter.

Cohen & Steers holds 8,178K shares representing 3.64% ownership of the company. In it's prior filing, the firm reported owning 9,150K shares, representing a decrease of 11.89%. The firm decreased its portfolio allocation in CUBE by 4.53% over the last quarter.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 6,694K shares representing 2.98% ownership of the company. In it's prior filing, the firm reported owning 6,612K shares, representing an increase of 1.23%. The firm decreased its portfolio allocation in CUBE by 1.04% over the last quarter.

Capital Research Global Investors holds 6,512K shares representing 2.90% ownership of the company. In it's prior filing, the firm reported owning 6,411K shares, representing an increase of 1.54%. The firm increased its portfolio allocation in CUBE by 0.46% over the last quarter.

CubeSmart Declares $0.49 Dividend

On December 7, 2022 the company declared a regular quarterly dividend of $0.49 per share ($1.96 annualized). Shareholders of record as of December 30, 2022 received the payment on January 17, 2023. Previously, the company paid $0.43 per share.

At the current share price of $47.58 / share, the stock's dividend yield is 4.12%. Looking back five years and taking a sample every week, the average dividend yield has been 3.91%, the lowest has been 2.48%, and the highest has been 6.33%. The standard deviation of yields is 0.60 (n=236).

The current dividend yield is 0.35 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 1.73. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is 0.48%, demonstrating that it has increased its dividend over time.

CubeSmart Background Information
(This description is provided by the company.)

CubeSmart is a self-administered and self-managed real estate investment trust. CubeSmart owns or manages 1,238 self-storage properties across the United States. According to the 2020 Self Storage Almanac, CubeSmart is one of the top three owners and operators of self-storage properties in the U.S.

This story originally appeared on Fintel.