Spirit Realty Capital Inc. (NYSE:SRC) : A Birds Eye View on Fundamental Trends

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Shares of Spirit Realty Capital, Inc. (NYSE:SRC) are currently poised at -8.33% from the open today and are trading at $6.71. More than 84,329,105 shares have exchanged hands compared to an average trading volume of 6.80M. At the current pps, the market cap stands at $3.38B. The stock prices of Spirit Realty Capital, Inc. (NYSE:SRC) are currently trading at -49.59% below its 52 week high and -23.40% above its 52 week low.

Spirit Realty Capital, Inc. (NYSE:SRC) has been in the news for all the right reasons. Recently, Spirit Realty Capital, Inc. (NYSE:SRC) announced First Quarter 2017 Financial and Operating Results.

FIRST QUARTER 2017 HIGHLIGHTS

— Generated Net Income of $0.03 per share and AFFO of $0.20 per share.

— Sold 3 Shopko stores for $21.0 million in gross proceeds resulting in Shopko concentration now at 8.1% compared to 9.1% at March 31, 2016.

— Since the end of the first quarter, sold an additional 5 Shopko stores for $25.5 million in gross proceeds.

— Acquired 26 properties for $147.9 million and disposed of 57 properties for $172.6 million, including 39 vacant and non-income producing properties for $79.9 million.

— Extinguished $49.2 million of high coupon secured debt with a 5.69% weighted average interest rate.

— Spirit’s corporate liquidity currently stands at $741 million, including availability under its unsecured line of credit and cash available for investment.

As per Zack’s analyst ratings, Spirit Realty Capital, Inc. (NYSE:SRC) currently has an average brokerage rating of 1.8. On a scale of 1 to 5, a rating of 1 or 2 would indicate a buy, and a rating of 4 or 5 would signify a sell recommendation. A rating of 3 would indicate a hold on the stock. The consensus target price on (NYSE:SRC) is $12.428 with a high of $15 and a low of $10.5.

Let’s take a look at the technical analysis.

The Barchart Technical Opinion rating is a 100% Sell and ranks in the Top 1% of all short term signal directions. Longer term, the trend strength is in the Top 1%. Long term indicators fully support a continuation of the trend. The market is in highly oversold territory. Beware of a trend reversal.

The Exponential Moving Average (EMA) is similar to a simple moving average (average price over a set period) but it utilizes a weighting factor that exponentially declines from the most recent data point (recent prices are weighted higher than oil prices). EMA analysis compares the short term (5 days and 13 days), intermediate term (20 days) and long term (50 days) EMA’s. The respective EMA’s will give bullish signals when trading above trailing EMA’s and below the current price and vice versa. EMA alerts include crossovers (i.e the 5 day EMA crosses above/below the 20 day EMA) and EMA convergencies (5 day EMA equivalent to 13 day EMA). The 5 day EMA 8.43 is higher than the last trade price suggesting a short term bearish pattern building up. Long term, the 50 day EMA 10.07 is also higher than the current trading price depicting a bearish trend overall.

The relative strength index (RSI) is a momentum oscillator that is able to measure the velocity and magnitude of stock price changes. Momentum is calculated as the ratio of positive price changes to negative price changes. The RSI analysis compares the current RSI against neutral(50), oversold (30) and overbought (70) conditions. Alerts will inform you when stocks recede from oversold/overbought levels or breakthrough neutral (50). The current RSI is 9.67 suggesting a bearish price action.

As such, while we believe Spirit Realty Capital, Inc. (NYSE:SRC) represents a compelling growth story exposed to several secularly attractive markets, it would be interesting to see how it fairs for long-term investors.

Spirit Realty Capital, Inc. is a real estate investment trust. It acquires single tenant, operationally essential real estate where the tenants conduct retail, service or distribution activities. The Company has investments throughout the United States. Its portfolio of properties is leased to tenants operating in different industries which includes restaurants; general, specialty and discount retailers; movie theatres; education facilities; health, fitness and recreational facilities; automotive dealers, parts and service facilities; and supermarkets. Spirit Realty Capital, Inc. is based in Scottsdale, Arizona.

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