As retailers struggled to pay rent, Simon Property Group's revenue dropped by 24%
The shares of real estate investment trust (REIT) Simon Property Group Inc (NYSE:SPG) are up 2.3% at $67.01 this morning, even after the firm reported a 24% drop in revenue for its second quarter, coming in lower than analysts' estimates, as well as an earnings miss. The mall owner cited pandemic-related closures, as many retailers struggled to pay their rent, but added that the response to recent re-openings has been encouraging.
Should these morning gains hold, SPG could be set for its second straight close atop its 110-day moving average, which rejected the stock's latest attempt at a rally in early June. While the $60 level acted as a floor for this pullback, the stock is still looking at a roughly 56% deficit year-to-date.
Most analysts are still proceeding with caution. Just three consider SPG to be a "strong buy," compared to 10 handing out a tepid "hold" rating. Meanwhile, the consensus 12-month target price of $85.43 is a whopping 30.5% premium to last night's close.
Options players are singing a different tune. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), SPG sports a 10-day call/put volume ratio of 2.17, which sits in the 85th percentile of its annual range. In other words, calls have doubled puts in the past two weeks, and are being picked up at a much quicker-than-usual clip.