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Jackson Hsieh, the President and CEO of Macerich Co (NYSE:MAC), recently acquired 56,000 shares of the company’s common stock, according to a regulatory filing. The shares were purchased at a price of $17.747 each, amounting to a total transaction value of $993,832. The purchase comes as the stock trades at $18.22, with InvestingPro data showing the stock has experienced a -10.76% decline over the past week. Following this acquisition, Hsieh holds a total of 226,500 shares in the company. This move reflects a significant investment in the real estate investment trust, which is headquartered in Santa Monica, California. The company, with a market capitalization of $4.7 billion, offers a 3.82% dividend yield and has maintained dividend payments for 32 consecutive years. According to InvestingPro, analysts have set price targets ranging from $16 to $25 per share, with comprehensive analysis available in the Pro Research Report, which covers 1,400+ top US stocks.
In other recent news, The Macerich Company reported its fourth-quarter 2024 earnings, surpassing expectations with an earnings per share (EPS) of $0.89 against the forecast of $0.03, and revenue of $273.68 million, exceeding the anticipated $221.73 million. Despite these positive results, the company faced a stock price decline, attributed to investor concerns over future guidance and market conditions. Meanwhile, Piper Sandler adjusted its outlook for Macerich, reducing the price target from $17.00 to $16.00 and maintaining an Underweight rating, reflecting a cautious view on the company’s near-term earnings prospects.
Macerich is actively restructuring its operations, aiming to enhance tenancy and establish more permanent leasing agreements, which may initially impact net operating income. The company is targeting 4 million square feet of leasing activity in the coming years, with plans to reduce leverage and generate $500 million from outparcel and land sales. Management has highlighted a strategic focus on optimizing lease outcomes and rental revenue uplift.
The company’s funds from operations (FFO) decreased to $117 million, or $0.47 per share, from $128 million, or $0.57 per share, in the same quarter the previous year, mainly due to higher interest and severance expenses. Macerich’s management remains committed to its Path Forward Plan, with a target of $1.80 in FFO by 2028. Piper Sandler acknowledged Macerich’s strategic plans but remains cautious due to the extended timeline for expected financial improvements.
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