Stock of the Day

September 24, 2019

Public Storage (PSA)

$304.30
+$0.24 (+0.1%)
Market Cap: $53.24B

About Public Storage

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns, and operates self-storage facilities. At December 31, 2023, we had: (i) interests in 3,044 self-storage facilities located in 40 states with approximately 218 million net rentable square feet in the United States and (ii) a 35% common equity interest in Shurgard Self Storage Limited (Euronext Brussels: SHUR), which owned 275 self-storage facilities located in seven Western European nations with approximately 15 million net rentable square feet operated under the Shurgard brand. Our headquarters are located in Glendale, California.

Public Storage Bull Case

Here are some ways that investors could benefit from investing in Public Storage:

  • Recent investment activity indicates strong institutional interest, with hedge funds and other institutional investors owning 78.79% of the company's stock, suggesting confidence in its future performance.
  • The stock price is currently at $297.21, which is near its one-year high of $369.99, indicating potential for growth and a strong market position.
  • Public Storage has shown resilience with a solid debt-to-equity ratio of 1.77, which indicates a balanced approach to leveraging debt while maintaining equity, a positive sign for financial stability.
  • Recent insider transactions, while showing some selling, also reflect a significant ownership by insiders (11.10%), which can align their interests with those of shareholders, potentially leading to better management decisions.
  • Public Storage has a history of consistent performance, with a one-year low of $256.31, suggesting that it has maintained a stable valuation even in fluctuating market conditions.

Public Storage Bear Case

Investors should be bearish about investing in Public Storage for these reasons:

  • Insider Nathaniel A. Vitan recently sold 450 shares at an average price of $317.99, which could signal a lack of confidence in the stock's short-term performance.
  • The company has a current ratio of 0.97, which is below 1, indicating that it may not have enough short-term assets to cover its short-term liabilities, a potential risk for liquidity.
  • Despite recent gains, the stock has experienced volatility, with significant fluctuations in trading volume, which could indicate uncertainty among investors.
  • Public Storage's quick ratio is also 0.97, suggesting that it may face challenges in meeting its short-term obligations without relying on inventory sales, which is a concern for financial health.
  • With a high debt-to-equity ratio, the company may be more vulnerable to economic downturns, as it relies heavily on borrowed funds to finance its operations.

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