Real estate investment trust Franklin Street Properties (FSP) has announced a share repurchase program of up to $50 million. In response, shares of the company jumped about 8.4% in Wednesday’s extended trading session.
Don't Miss Our Christmas Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Franklin Street Chairman and CEO George J. Carter, said, “We previously announced 2021 disposition guidance in the range of $350 million to $450 million in aggregate gross proceeds. We continue to intend to use those proceeds primarily for debt reduction.” (See Franklin Street stock chart on TipRanks)
Carter added, “However, we believe that our stock price may at times not be fully reflective of the value of our underlying assets. As a result, we may use a portion of proceeds from those asset sales for share repurchases as market conditions warrant.”
Recently, BMO Capital analyst Frank Lee reiterated a Sell rating on the stock with a price target of $6.
During the company’s recent Q1 earnings call, Lee asked about the composition of the buyers interested in its asset sales. To this Carter answered that the prospective investors were both local and national, primarily private.
The other analyst covering the stock, Robert W. Baird’s Dave Rodgers has a Hold rating on the stock with the same price target as Lee.
The two ratings add up to a Moderate Sell consensus rating. The average Franklin Street analyst price target of $6 implies 14.3% upside potential. Shares are up 25.3% so far this year.
Related News:
Duck Creek Technologies Adds Futran Solutions to its Partner Ecosystem
Delta Air Lines to Hire 1,000 Pilots, Other Airlines to Follow Suit – Report
Accenture Makes Strategic Investment in Imburse
