The stock price of Office Properties Income Trust (NASDAQ: OPI) has plunged by -2.64 when compared to previous closing price of 2.27, but the company has seen a 3.76% gain in its stock price over the last five trading sessions. seekingalpha.com reported 2024-09-04 that Office Properties Income Trust (OPI) faces a $500 million debt repayment by February 2025, raising concerns about its ability to remain a going concern. Occupancy rates and leasing volumes have declined, while the REIT’s private debt exchange offer was poorly received, indicating refinancing challenges. The Fed’s anticipated rate cut may provide some relief, but OPI’s financial health remains precarious, with potential dividend suspension to conserve cash.
Is It Worth Investing in Office Properties Income Trust (NASDAQ: OPI) Right Now?
The price-to-earnings ratio for Office Properties Income Trust (NASDAQ: OPI) is above average at 8.01x. The 36-month beta value for OPI is also noteworthy at 1.11. There are mixed opinions on the stock, with 1 analysts rating it as a “buy,” 0 rating it as “overweight,” 0 rating it as “hold,” and 1 rating it as “sell.”
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The public float for OPI is 49.12M, and at present, short sellers hold a 10.39% of that float. The average trading volume of OPI on September 19, 2024 was 690.49K shares.
OPI’s Market Performance
OPI stock saw a decrease of 3.76% in the past week, with a monthly decline of -3.49% and a quarterly a decrease of -3.91%. The volatility ratio for the week is 5.24%, and the volatility levels for the last 30 days are 4.77% for Office Properties Income Trust (OPI). The simple moving average for the last 20 days is -0.92% for OPI stock, with a simple moving average of -27.54% for the last 200 days.
Analysts’ Opinion of OPI
Many brokerage firms have already submitted their reports for OPI stocks, with RBC Capital Mkts repeating the rating for OPI by listing it as a “Underperform.” The predicted price for OPI in the upcoming period, according to RBC Capital Mkts is $14 based on the research report published on March 07, 2023 of the previous year 2023.
OPI Trading at -4.82% from the 50-Day Moving Average
After a stumble in the market that brought OPI to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -70.63% of loss for the given period.
Volatility was left at 4.77%, however, over the last 30 days, the volatility rate increased by 5.24%, as shares sank -4.33% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +13.92% upper at present.
During the last 5 trading sessions, OPI rose by +3.76%, which changed the moving average for the period of 200-days by -60.39% in comparison to the 20-day moving average, which settled at $2.23. In addition, Office Properties Income Trust saw -69.81% in overturn over a single year, with a tendency to cut further losses.
Stock Fundamentals for OPI
Current profitability levels for the company are sitting at:
- 0.62 for the present operating margin
- 0.65 for the gross margin
The net margin for Office Properties Income Trust stands at 0.03. The total capital return value is set at 0.09. Equity return is now at value 1.03, with 0.35 for asset returns.
Based on Office Properties Income Trust (OPI), the company’s capital structure generated 0.63 points at debt to capital in total, while cash flow to debt ratio is standing at 0.05. The debt to equity ratio resting at 1.74. The interest coverage ratio of the stock is 2.47.
Currently, EBITDA for the company is 312.37 million with net debt to EBITDA at 7.43. When we switch over and look at the enterprise to sales, we see a ratio of 4.52. The receivables turnover for the company is 3.77for trailing twelve months and the total asset turnover is 0.14.
Conclusion
In summary, Office Properties Income Trust (OPI) has had a bad performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
