Why Did Washington Prime Group Inc. (NYSE:WPG) Stock Investors Go Insane?

In the recent trading session, Washington Prime Group Inc. (NYSE:WPG) shares gained 1.71% or 0.06 points to close at $3.57 with a thin trading volume of 1.029 million shares. It opened the trading session at $3.52, the shares rose to $3.6 and dropped to $3.5, the range by which the price of stock traded the whole session. The company now has a market cap of $668 million and currently has 190.31 million outstanding shares. Washington Prime Group Inc. (WPG) stock has plunged -10 percent of market value in 21 trading days.

WPG stock’s trailing 3-year beta is 0.96, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was $0.03 share in the trailing 52 weeks. The stock’s value fallen -3.57 percent year to date (YTD) compared to a decline of -36.98 percent in 52 week’s period. The firm’s shares are still trading -39.9 percent below its 1-year high of $5.94 and 14.79 percent up from 52-week low of $3.11. The average consensus ranking on the company is 4, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a hold.

Washington Prime Group Inc. (WPG) is most likely going to rise -1.96 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $3.5 as 12-month high price target. This represents a whopping -1.96 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $3.5, which means a return possibility of -1.96 percent in comparison with the closing price of the stock of $3.57 in recent trading session. The lowest price set for the stock is $3.5 which is just above -1.96 percent from WPG share’s price at the end of session.

Past records have indicated that shares in Washington Prime Group Inc. rose on 10 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of WPG’s Q4 earnings on February 19. Analysts are predicting revenue to suffer decline of -4.9 percent to $175M in the financial fourth quarter, while EPS will soar by about -266.67 percent to -$0.05 per share. In the last quarter, it’s earnings of $0.28 per share came worse than the $0.32, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $184.32M. Earnings are seen to rise by -63.5 percent this year, -52 percent in the coming year.

Let’s take a glimpse at some insider activity at Washington Prime Group Inc. (NYSE:WPG) and observe the pattern. The earliest insider trade happened on 09/05/2019. LEVY JOHN F gathered a total of 14.8 thousand shares of the firm at average share price of $3.36. The total amount for the purchase was set at $49.73 thousand. On completing this exchange, the Director account balance was 14.8 thousand shares. The stock grew 6.55 percent from that insider purchase. On 09/03/2019, Lindimore Joshua, Executive VP, Head of Leasing, did a sale of 0.33 thousand shares at a price of $3.18 per share. This got rid of 1.06 thousand shares from the insider’s fortune and the stock experienced a 12.58 percent rally in price since the news became public. This exchange saw 16.47 thousand shares get out from the Executive VP, Head of Leasing account.

On 06/26/2019, Director Birge J. Taggart recorded a purchase transaction valued at $99.9 thousand. The purchase at $3.53 a share has added 28.3 thousand shares into the insider’s portfolio position. Meanwhile, shares price witnessed 1.42 percent increase since the transaction reporting date. The company insider is left with 28.3 thousand shares remaining in the account. CONFORTI LOUIS G, who works as CEO at the company, performed a purchase of 28.25 thousand shares in a transaction worth $98.31 thousand. The acquisition recorded on 06/26/2019 was priced at $3.48 per share. The stock price soared 2.87 percent since the transaction. CONFORTI LOUIS G currently holds a stake of 377.51 thousand in WPG stock which is worth $1.35 million after the insider buying.

The stock is lingering around the initial support level of $3.48. After this, the following support is at the zone of $3.45. Up until the time the WPG stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 43.82 on the daily chart, and this may be a cause for concern. In case the price goes below $3.45 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $3.56 level may cause a pull-back move approaching $3.61 mark.

Washington Prime Group Inc. (WPG) shares are trading at a P/E ratio of 29.29 times earnings posted in the trailing 12 months. The industry WPG deals with has an average P/E of 34.31. Its P/B ratio is standing at 1.03X compared to the 7.45 industry average. It is additionally sporting a 1.09 on the Price-to-Sales ratio, compared to the industry’s P/S average of 1.55. Washington Prime Group Inc. has a 65% gross profit margin, with its operating margin around 25.2%. Alongside this, the company’s net profit margin currently stands at 4.2%.