Douglas Emmett Inc. [NYSE:DEI] prices stumbled -0.39% on Friday.
With a current price of $25.56, DEI is active in the REIT – Office industry and it looks to be on-track for a five-day slide of -2.91%.
In addition, DEI’s high over the last year is $45.59 and the low is $23.16. Over the last two 52 weeks, the company is trading -39.18%, while the S&P 500 is trading 1.11%.
The Bears are coming
Holding a Market Cap of $4.60 billion, Douglas Emmett Inc. has seen a trading range over the last year of $23.16-$45.59.
For the last five days, DEI is down from its last closing price. The average shares trading hands each day is 1.29M, with average 10-day volume coming in at 1.16 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for DEI. When we apply the Elder Force Index to Douglas Emmett Inc., we are seeing an Elder Force Indicator number of -78565.3.
Recent Performance
The recent performance of the stock is another area that can tell traders how to proceed. DEI is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 96.83. Moreover, the company’s enterprise value has gone from $9.83B to $9.83B quarter-over-quarter. This could be an inflection point for the company, but either way we believe you should be adding them to your watchlist.
In the last quarter, DEI made a profit of 30.01 million. Douglas Emmett Inc. also saw quarter revenue growth year over year of 8.75%. In addition, the company has operating cash flow of $478.22 million.
Technical Analysis
Looking at popular technical indicators, the company’s 5-day moving average is 25.96 compared to the 50-day moving average of 26.56. So, traders might want to tread carefully if they are going to bid.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. DEI currently holds a 9-day RSI of 44.28%, while 100-day RSI stands at 44.79%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. DEI’s 9-day MACD is -0.12 and the company’s 100-day MACD stands at -2.96.
Inside Moves
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 5.53% by insiders and 95.64% by institutions. Regarding institutional holdings, Vanguard Group, Inc. (The) owns 13.73%, while the second top holder, Blackrock Inc., currently owns 10.98%.
Over the last six months, insiders have bought 36,049 with the most recent transaction from Kaplan Jordan L, Chief Exec Officer, President, with a purchase at price 25.48 per share.
Conclusion
Overall, the recommended rating for DEI is Moderate Buy. Currently, the company has 8 analysts watching the stock, and the average quarterly earnings estimate is 0.04. Quarterly revenue estimates are averaging 225.06M with the high estimate reaching 236.51M and the low at 205M.
To review, the current 1-year target estimate is sitting at 32.50, while the current price 25.56. Based on this, we expect the stock to rise considering the aforementioned fundamentals.
