Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
New York-based company, Safehold Inc. (NYSE: SAFE) operates as a real estate company. Safehold’s major focus is on acquiring, managing, and capitalizing ground leases. The company recently released its earnings report for the Q3 of 2023. Safehold has made a positive growth of 167% for the first time in 2 years.
The revenue recorded was $85.56 Million while the gross income grew more than 10 folds. For instance, Quarter 2 gross income was $8 Million as compared to the current one of $82 Million.
Operating Income Still Negative
Despite Safehold’s efforts, their selling and general expenditures resulted in negative operating income once again. Now, looking at the balance sheet, Safehold’s debt-to-equity ratio is 1.77. This shows that the company has 1.7 times debt upon its reserves and share capital. Considering the nature of the industry, high debt among the peer companies is common as the real estate sector is capital intensive.
SAFE stock is one of the few stocks that were not affected by the COVID-19 pandemic. Although looking through the history pages, one can see a lot of volatility during the end of March 2020.
Despite the high volatility, the uptrend continued in the SAFE stock price. However, this bullish rally stopped soon in August 2021 when the shares reached their all-time high of $95. Since then, the bears have taken absolute control which resulted in the fall of the stock price.
Technical Analysis and Prediction of the SAFE Stock Price
At press time, the trading price for the SAFE stock is at $15.88, with the bears having pushed it near its all-time low levels. The current support level lies at $16.19, which is crucial for the stock to reclaim.
If it manages to do so, it can move towards its immediate resistance level of $27.38. The relative strength index rose from its oversold level of 30 back in mid-October. At present, the RSI line is at 43 while its simple moving average line is at 36.
However, the SAFE stock price finds itself on the “judgment point,” where the gap between the trendline and support level has steepened. This leaves two possible scenarios: either the bulls will push the price above the immediate resistance, breaking the bearish trend, or the bears will claim the support level, thereby, continuing the trend.
Conclusion
Safehold Inc. (NYSE: SAFE) operates as a real estate company. The SAFE stock price has been down after making its all-time high in August 2021. At present, the company has posted impressive growth in its Quarter 3 results. This can surge the price from its current ‘rock bottom’ levels.
Technical Levels
- Support Levels: $16.19 and $15.12
- Resistance Levels: $27.38 and $40.30
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks or related indexes comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/11/02/safe-stock-price-q3-reports-10-folds-growth-in-gross-income/