A Duo of Underperforming Holdings to Reduce
- By Alberto Abaterusso
Shareholders of GTT Communications Inc (NYSE:GTT) and Washington Prime Group Inc (NYSE:WPG) have seen their holdings underperforming significantly over the past couple of years, as they have missed the S&P 500 Index by wide margins.
Furthermore, sell-side analysts on Wall Street do not seem to be optimistic about these stocks, which indicates that the share prices are not expected to bounce back in 2021.
Therefore, shareholders of these stocks may want to consider reducing their holdings, in my opinion.
GTT Communications Inc (NYSE:GTT)
Shares of the McLean, Virginia-based provider of cloud networking services to businesses and government entities worldwide have declined by 78.5% over the past year, 95% over the past two years and 88% over the past five years through April 5. It underperformed the S&P 500 by 142.5%, 136% and 188%, respectively.
The company is currently not paying dividends to its shareholders.
The share price was trading at around $1.82 at close on April 5 for a market capitalization of $107.05 million and a 52-week range of $1.51 to $12.59.
The 14-day relative strength index of 40 indicates the stock is still trading far from oversold levels despite the sharp decline in the share price.
One sell-side analyst on Wall Street has recommended a sell rating for this stock.
Washington Prime Group Inc (NYSE:WPG)
Shares of the Columbus, Ohio-based real estate investment trust company have decreased by 66% over the past year, 95% over the past two years and by 97% over the past five years through April 5. The stock has underperformed the S&P 500 by 130%, 136% and 197%, respectively, over these time periods.
The company is facing some financial issues and is reportedly planning to file for Chapter 11 bankruptcy. The board of executives has thus decided to interrupt the distribution of quarterly dividends.
The share price was trading at around $2.49 at close on April 5 for a market capitalization of $60.52 million and a 52-week range of $1.69 to $17.55.
The 14-day relative strength index of 36 indicates the stock is not far from oversold levels as a result of the share price tumble.
The stock has a median recommendation that falls between a hold and underperform rating.
Disclosure: I have no positions in any securities mentioned in this article.
Read more here:
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
This article first appeared on GuruFocus.
