Why STORE Capital Stock Fell 10% on Monday

Shares of STORE Capital (NYSE: STOR), a retail-focused net lease real estate investment trust (REIT), fell about 5% out of the gate on May 4. It then spiked downward, hitting a 10% decline, before just as quickly recovering some ground. By 11:30 a.m. EDT, the stock was trading with a roughly 6% decline. This type of movement a day before the REIT was scheduled to announce earnings on May 5 suggests that a large investor was looking to reduce its exposure to the stock prior to that release.

So far, 2020 has been a very tough year for STORE Capital shareholders, with the stock down by roughly 50%. One of the big problems here is that STORE's portfolio is heavily weighted toward retail. Many of its tenants have been considered nonessential during the COVID-19 business shutdowns as the government has looked to slow the spread of the novel coronavirus. In fact, first-quarter results are likely to include some very negative news.

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Source Fool.com