Simon Property Group Stock Hits Fresh High After Earnings

No fewer than five analysts have raised their price targets

Deputy Editor
Nov 2, 2021 at 10:23 AM
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Simon Property Group Inc (NYSE:SPG) announced third-quarter earnings of $1.77 per share after the close yesterday, which is higher than the $1.09 per share anticipated by analysts, as well as better-than-expected revenue. The mall operator saw an increase in cash flow as customers returned to the malls, and several analysts have chimed in with bull notes after the event. Piper Sandler noted that product shortages do not seem to impact sales, and raised its price target to $180 from $165, while no fewer than four other analysts lifted their price objectives as well. 

SPG is up 7.8% to trade at $157.00 at last glance, earlier boasting a fresh two-year high of $159.97. The 120-day moving average has helped guide the stock higher for roughly a year, and has been a consistent floor of support for the past couple months. Year-to-date, Simon Property Group stock is up 75.1%. Still, a short-term pullback may be in the cards, as SPG's Relative Strength Index (RSI) of 79.5 sits just on the cusp of "overbought" territory. 

There is plenty of room for upgrades amid the stock's outperformance. Of the 14 analysts in coverage, eight carry a "buy" or better rating on the stock, with six a tepid "hold." Meanwhile, short interest represents 4.1% of the equity's available float, and it would take over seven days to buy back these bearish bets, at SPG's average pace of trading. There has also been a handful of price-target hikes following the company's earnings.

Calls have been more popular then usual, as per the security's 10-day call/put volume ratio of 2.86 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 92% of readings from the past year. Today, 5,502 calls and 1,125 puts have crossed the tape straight out of the gate, with call volume running at 12 times what's typically seen and pacing for the 98th percentile of its annual range. The November 160 call is the most active, followed by the 150 call in the same monthly series. 


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