PSA stock has a large number of "strong sell" ratings
Public Storage (NYSE:PSA) gapped lower back in July following a bearish analyst note out of Evercore ISI, which said the stock could disappoint investors. Coming into today, PSA shares had received five typically rare "strong sell" recommendations from the brokerage community, compared to zero "buy" ratings. Goldman Sachs this morning became the latest to move to the sideline in a note on the real estate investment trust (REIT).
Jumping in, Goldman downgraded the equity to "sell" from "neutral" and dropped its price target by $12 to $198. The reduced outlook was based on Public Storage's slowing same-store sales growth. In response, PSA shares have fallen 4.7% to trade at $210.44, putting the stock near the bottom of the S&P 500 Index (SPX) today. In the process, it's fallen back below the 80-day moving average to test its year-to-date breakeven level.
Short interest also remains high, accounting for almost 6% of the security's total float, with 8.5 million shares held by short sellers. If you go by the average daily trading volume, it would take almost eight sessions to cover these positions.
As for options trading, activity has been light on an absolute basis at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). Today, though, call and put volume are both running well above the daily average. The most popular option by far is the September 200 put, while new positions are being opened at the October 210 call.