Zacks Investment Research upgraded shares of DIGITAL RLTY TR/SH (NYSE:DLR) from a hold rating to a buy rating in a research note released on Wednesday. Zacks Investment Research currently has $137.00 price objective on the real estate investment trust’s stock.
According to Zacks, “Shares of Digital Realty have outperformed its industry in the past three months. Further, the trend in estimate revisions of 2018 funds from operations (FFO) per share indicates a favorable outlook for the company. The company’s second-quarter 2018 core FFO per share outpaced the Zacks Consensus Estimate. Operating revenues marked an impressive 33.4% year-over-year rise. Also, Digital Realty raised its 2018 core FFO per share outlook. Notably, solid fundamentals of the data-center market offer scope to the company to ride on the growth curve through accretive acquisitions and development efforts. The company also focuses on maintaining an investment grade balance sheet, enjoys ample liquidity and has a well-laddered debt maturity schedule. Nevertheless, aggressive pricing pressure is likely to continue in the upcoming period. Moreover, the company has a substantial debt burden and hence rate hike adds to its woes.”
A number of other brokerages have also recently commented on DLR. BMO Capital Markets lifted their target price on DIGITAL RLTY TR/SH from $120.00 to $124.00 and gave the stock a market perform rating in a report on Monday, July 30th. Barclays lifted their target price on DIGITAL RLTY TR/SH from $139.00 to $141.00 and gave the stock an overweight rating in a report on Thursday, August 2nd. Citigroup lifted their target price on DIGITAL RLTY TR/SH from $119.00 to $131.00 and gave the stock a buy rating in a report on Monday, July 30th. They noted that the move was a valuation call. Credit Suisse Group set a $130.00 target price on DIGITAL RLTY TR/SH and gave the stock a hold rating in a report on Wednesday. Finally, Guggenheim reiterated a hold rating and issued a $125.00 target price on shares of DIGITAL RLTY TR/SH in a report on Friday, July 20th. Eight equities research analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the stock. DIGITAL RLTY TR/SH presently has a consensus rating of Buy and an average target price of $127.28.
DIGITAL RLTY TR/SH (NYSE:DLR) last released its quarterly earnings results on Thursday, July 26th. The real estate investment trust reported $0.32 earnings per share for the quarter, missing the consensus estimate of $1.61 by ($1.29). The firm had revenue of $754.91 million for the quarter, compared to analysts’ expectations of $759.30 million. DIGITAL RLTY TR/SH had a net margin of 9.79% and a return on equity of 3.02%. The business’s quarterly revenue was up 33.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.54 EPS. analysts anticipate that DIGITAL RLTY TR/SH will post 6.6 EPS for the current fiscal year.
In related news, insider Edward F. Sham sold 10,435 shares of the business’s stock in a transaction on Friday, July 6th. The stock was sold at an average price of $115.00, for a total transaction of $1,200,025.00. Following the completion of the transaction, the insider now owns 6,207 shares in the company, valued at approximately $713,805. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP Joshua A. Mills sold 2,500 shares of the business’s stock in a transaction on Monday, July 2nd. The shares were sold at an average price of $112.50, for a total value of $281,250.00. Following the transaction, the senior vice president now owns 6,666 shares of the company’s stock, valued at approximately $749,925. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 20,435 shares of company stock valued at $2,318,775. 0.43% of the stock is owned by company insiders.
Institutional investors and hedge funds have recently bought and sold shares of the stock. Kayne Anderson Capital Advisors LP boosted its holdings in DIGITAL RLTY TR/SH by 18.3% during the 1st quarter. Kayne Anderson Capital Advisors LP now owns 25,900 shares of the real estate investment trust’s stock valued at $2,728,000 after acquiring an additional 4,000 shares during the period. Spinnaker Trust purchased a new position in DIGITAL RLTY TR/SH during the 1st quarter valued at $1,640,000. Oppenheimer Asset Management Inc. boosted its holdings in DIGITAL RLTY TR/SH by 3.2% during the 1st quarter. Oppenheimer Asset Management Inc. now owns 19,876 shares of the real estate investment trust’s stock valued at $2,095,000 after acquiring an additional 618 shares during the period. Duff & Phelps Investment Management Co. boosted its holdings in DIGITAL RLTY TR/SH by 8.7% during the 1st quarter. Duff & Phelps Investment Management Co. now owns 975,494 shares of the real estate investment trust’s stock valued at $102,798,000 after acquiring an additional 77,850 shares during the period. Finally, Honeywell International Inc. raised its position in DIGITAL RLTY TR/SH by 13.3% during the 1st quarter. Honeywell International Inc. now owns 70,540 shares of the real estate investment trust’s stock valued at $7,434,000 after purchasing an additional 8,260 shares in the last quarter. Institutional investors own 98.54% of the company’s stock.
About DIGITAL RLTY TR/SH
Digital Realty supports the data center, colocation and interconnection strategies of more than 2,300 firms across its secure, network-rich portfolio of data centers located throughout North America, Europe, Asia and Australia. Digital Realty's clients include domestic and international companies of all sizes, ranging from cloud and information technology services, communications and social networking to financial services, manufacturing, energy, healthcare, and consumer products.
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