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Alberto Abaterusso
Alberto Abaterusso
Articles (2273) 

2 Underperforming Holdings to Ease Up On

Their shares have been performing poorly

August 10, 2020 | About:

Shareholders of Macy's Inc (NYSE:M) and AG Mortgage Investment Trust Inc (NYSE:MITT) may want to ease up a bit on their holdings, in my opinion, as these stocks have underperformed the S&P 500 index significantly over the past one-year, three-year and five-year periods.

Furthermore, these two stocks have negative recommendation ratings on Wall Street, which means that their share prices are foreseen to continue performing inadequately in the months ahead.

Macy's Inc

Shares of the New York-based retail store chain company have decreased 66% in the past year, 71% in the past three years and 90% in the past five years through Aug. 7. The stock has underperformed the S&P 500 index by about 81%, 106% and 151%, respectively.

Macy's Inc has suspended the distribution of quarterly dividends due to a deterioration of conditions of the retail environment.

Shares were trading at a price of $6.62 per unit at close on Aug. 7 for a market capitalization of $2.05 billion and a 52-week range of $4.38 to $25.76.

The 14-day relative strength index of 52 suggests that the stock is still far from oversold levels even though the share price experienced a sharp decline.

Wall Street sell-side analysts recommend an underweight rating for the stock and have set an average target price of $5.67, which mirrors an additional 15% share price decline from Friday's closing price.

AG Mortgage Investment Trust Inc

Shares of the New York-based real estate investment trust (REIT) company focusing on residential mortgage-backed securities and credit investments in the U.S. fell by 82.6% over the past year, 86% over the past three years and 84% over the past five years through Aug. 7. The stock has underperformed the S&P 500 by 97.4%, 121.3% and 145.3%, respectively.

AG Mortgage Investment Trust Inc suspended the payment of quarterly dividends.

Shares were trading at a price of $2.80 per unit at close on Aug. 7 for a market capitalization of $91.91 million and a 52-week range of $1.46 to $17.32.

The 14-day relative strength index of 41 indicates that the stock is still far from oversold levels.

Wall Street sell-side analysts recommend to sell shares of this stock and have established an average target price of $2 per unit, reflecting a further decline of 28.6%.

Disclosure: I have no positions in any securities mentioned in this article.

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About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about gold, silver and precious metals mining industries. My articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. I hold a Master's Degree in Business Administration from Università degli Studi di Bari (Italy), Aldo Moro. I am based in The Netherlands.

You can follow me on Twitter at https://twitter.com/AAbaterusso

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