DIGITAL RLTY TR/SH (DLR) Shares Down 9.2% on Disappointing Earnings

Shares of DIGITAL RLTY TR/SH (NYSE:DLR) traded down 9.2% on Friday following a weaker than expected earnings announcement. The company traded as low as $105.57 and last traded at $106.01. 4,732,988 shares traded hands during mid-day trading, an increase of 256% from the average session volume of 1,330,062 shares. The stock had previously closed at $116.80.

The real estate investment trust reported $0.33 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $1.62 by ($1.29). DIGITAL RLTY TR/SH had a return on equity of 3.02% and a net margin of 9.79%. The company had revenue of $768.92 million for the quarter, compared to the consensus estimate of $773.08 million.

The firm also recently declared a quarterly dividend, which was paid on Friday, September 28th. Shareholders of record on Friday, September 14th were issued a dividend of $1.01 per share. The ex-dividend date of this dividend was Thursday, September 13th. This represents a $4.04 dividend on an annualized basis and a yield of 3.81%. DIGITAL RLTY TR/SH’s payout ratio is currently 65.80%.



A number of analysts have weighed in on the company. BMO Capital Markets set a $120.00 price target on DIGITAL RLTY TR/SH and gave the stock a “hold” rating in a report on Friday. Guggenheim reiterated a “hold” rating and set a $125.00 price target on shares of DIGITAL RLTY TR/SH in a report on Friday, July 20th. Citigroup increased their price target 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. Zacks Investment Research upgraded DIGITAL RLTY TR/SH from a “hold” rating to a “buy” rating and set a $136.00 price target for the company in a report on Tuesday, July 31st. Finally, Stifel Nicolaus assumed coverage on DIGITAL RLTY TR/SH in a report on Tuesday, July 17th. They set a “buy” rating and a $128.00 price target for the company. Seven analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company. DIGITAL RLTY TR/SH has a consensus rating of “Buy” and a consensus target price of $127.00.

Several institutional investors and hedge funds have recently modified their holdings of DLR. First Republic Investment Management Inc. acquired a new stake in shares of DIGITAL RLTY TR/SH in the 2nd quarter valued at about $46,477,000. Osterweis Capital Management Inc. acquired a new stake in shares of DIGITAL RLTY TR/SH in the 2nd quarter valued at about $24,663,000. Security Capital Research & Management Inc. grew its stake in shares of DIGITAL RLTY TR/SH by 50.7% in the 2nd quarter. Security Capital Research & Management Inc. now owns 482,605 shares of the real estate investment trust’s stock valued at $53,849,000 after buying an additional 162,300 shares during the period. Investec Asset Management LTD acquired a new stake in shares of DIGITAL RLTY TR/SH in the 2nd quarter valued at about $16,179,000. Finally, American Century Companies Inc. grew its stake in shares of DIGITAL RLTY TR/SH by 57.0% in the 2nd quarter. American Century Companies Inc. now owns 290,825 shares of the real estate investment trust’s stock valued at $32,450,000 after buying an additional 105,612 shares during the period. Institutional investors own 98.37% of the company’s stock.

The company has a quick ratio of 0.30, a current ratio of 0.30 and a debt-to-equity ratio of 0.95. The company has a market cap of $23.20 billion, a P/E ratio of 17.27, a PEG ratio of 2.48 and a beta of 0.18.

DIGITAL RLTY TR/SH Company Profile (NYSE:DLR)

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.

Featured Article: How is an ETF different from a mutual fund?

Receive News & Ratings for DIGITAL RLTY TR/SH Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for DIGITAL RLTY TR/SH and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply