Back to top

Image: Bigstock

Farmland Partners (FPI) Surges 8.6%: Is This an Indication of Further Gains?

Read MoreHide Full Article

Farmland Partners (FPI - Free Report) shares ended the last trading session 8.6% higher at $14.64. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 15.1% gain over the past four weeks.

This increased optimism can be attributed to Farmland Partners’ resilient business and rising agricultural commodity prices. Perhaps, the company’s recent announcement regarding completion of sale of 2,811 acres across eight farms for $18.3 million to Promised Land Opportunity Zone Farms I, LLC, which is a private investment vehicle that targets acquisition and improvement of farmland in qualified opportunity zones in the United States, acted as a tailwind. The move comes as part of the company’s strategic efforts to enhance its asset management capabilities.

Price and Consensus

Price Consensus Chart for Farmland Partners

This real estate investment trust specializing in farmland is expected to post quarterly funds from operations ("FFO") of $0.30 per share in its upcoming report, which represents a year-over-year change of +7.1%. Revenues are expected to be $22.22 million, up 1.6% from the year-ago quarter.

While FFO and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in FFO estimate revisions and near-term stock price movements.

For Farmland Partners, the consensus FFO per share estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in FFO estimate revisions. So, make sure to keep an eye on FPI going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Farmland Partners Inc. (FPI) - free report >>

Published in