SMTH reduces Equity LifeStyle stake, but strong dividend.

Sumitomo Mitsui Trust Holdings Trims Position in Equity LifeStyle Properties (ELS)

Investing in today’s tumultuous economy requires keeping an eye on major players in the market, such as Sumitomo Mitsui Trust Holdings Inc. The company recently sold 18,886 shares of Equity LifeStyle Properties, Inc. (ELS), a real estate investment trust (REIT) that owns and operates manufactured home communities and recreational vehicle communities. As of its latest disclosure with the SEC, Sumitomo Mitsui Trust Holdings Inc. owns approximately 1,284,458 ELS shares, a decrease of 1.4% and about 0.69% of ELS’s percentage ownership valued at $82,976,000.

Despite trimming its position in ELS stock, Sumitomo Mitsui Trust Holdings acknowledges ELS’s positive change from its previous quarterly dividend with a 2.73% yield for investors on record as of March 31st. The dividend of $0.447 per share will be paid on April 14th. It is important to note that even though ELS’s dividend payout ratio is currently at 116.99%, Sumitomo Mitsui Trust Holdings continues to hold ELS stock.

Institutional Investors Increase Ownership of Equity LifeStyle Properties (ELS)

Modern investors must stay vigilant to stay ahead. In recent quarters, Equity LifeStyle Properties (ELS) has seen an increase in institutional investor ownership. Canada Pension Plan Investment Board now owns over 2 million ELS shares after lifting its position by 519.1% during the third quarter. Invesco Ltd., State Street Corp, Victory Capital Management Inc., and Russell Investments Group Ltd. have also seen gains in their positions during this time frame.

On Friday, ELS opened at $65.57 with a market capitalization of $12.21 billion. The REIT has a PE ratio of 42.86 and a P/E/G ratio of 4.98 with a beta of 0.67. ELS’s financial ratios show a current ratio and quick ratio of 0.02 and a debt-to-equity ratio of 0.46 respectively.

Analyst Ratings for Equity LifeStyle Properties (ELS)

Various analyst reports are available for ELS. Wells Fargo & Company started coverage with an overweight rating and price objective of $75.50 per share. Robert W. Baird lifted its target price for the stock from $68 to $78 per share and named ELS as “Outperform”. StockNews.com gave the stock a “hold” rating for the company. Barclays claimed an “overweight” status by lifting its target price on shares from $75 to $79 per share. Citigroup also raised its target prices for the stock from $62 to $74 per share but gave ELS as “neutral” rating. According to Bloomberg’s average ratings, five analysts rated the stock a “hold” and four rated it as a “buy” rating.

Hedge funds and institutional investors own close to 91% of ELS shares. It is likely that investors will act based on the movement within these large companies.