CubeSmart CUBE Stock Analysis

CubeSmart stock closed at $50.58/share on 10/12/2021, and has shown bullish signals that traders & investors should take a closer look at.

CUBE stock is a specialty REIT, focused on providing self-storage solutions for their customers.

CubeSmart CUBE Stock’s Technicals Broken Down

CubeSmart CUBE Stock's Technical Performance Over The Last Year

CUBE Stock Price: $50.58

10 Day Moving-Average: $48.97

50 Day Moving-Average: $50.88

200 Day Moving-Average: $42.79

RSI: 53.8

MACD: -0.59

Yesterday, CUBE stock completed a bullish MACD crossover, while also breaking out above its 10 Day Moving-Average.

CUBE’s RSI is still neutral, showing more room to breakout to the upside before becoming overbought, which will benefit their share price as they establish a new range.

With 0.5% between the price & the 50 Day MA & ~4% separating the 10 Day from the 50 Day MA, CubeSmart’s stock has momentum to continue climbing higher in the near-term.

CubeSmart CUBE Stock As A Long-Term Investment

Investors may be attracted to CUBE stock for it’s dividend yield at 2.75%.

However, their Payout Ratio may put this in jeopardy in the long run, as it is currently 148% (per Yahoo Finance).

CUBE has Total Cash (mrq) of $3.99M & Total Debt (mrq) of $2.35B, and a P/E (ttm) of ~53.

CUBE’s P/B is 5.36, which looks a bit rich, although they do have 22% Quarterly Revenue Growth Y-o-Y.

Despite this, they enjoy 98% % Institutional Investors, which some investors may take as a long-term sign of confidence.

CubeSmart CUBE Stock As A Short-Term Trade Using Options

Short-term oriented traders may wish to use options to take advantage of CUBE’s recent bullish momentum, while also fending off broader market volatility.

I am looking at the 10/15 expiration contracts, primarily at the $45 & $50 calls.

As a hedge, the $55 puts also look appealing, and given their open interest vs. the calls it appears that there is still much more bullish than bearish sentiment surrounding CUBE stock.

Tying It All Together

Both investors & traders may find CUBE stock to be a great addition to their portfolio.

Long-term investors may like their growth, as well as their dividend yield if it proves to be sustainable over time.

Short-term traders will like their current momentum, especially in turbulent markets where there are not many great looking opportunities for profits.

Overall, investors & traders should take a closer look at CUBE stock.

*** I DO NOT OWN SHARES OF CUBE STOCK ***

Leave a Reply

Your email address will not be published. Required fields are marked *