Zacks Investment Research cut shares of Realty Income (NYSE:O) from a buy rating to a hold rating in a report released on Wednesday morning.
According to Zacks, “Shares of Realty Income have outperformed its industry in the past three months. Notably, this freestanding retail REIT derives more than 90% of its annualized retail rental revenues from tenants belonging to service, non-discretionary and low-price retail business. Such businesses are less susceptible to economic recessions, as well as competition from Internet retailing. In addition, accretive acquisitions and solid balance sheet strength augur well for its long-term growth. However, the company’s substantial exposure to single tenant assets raises its risks associated with tenant default. Further, generation of notable rental revenue from assets leased to drug stores and rate hike remain concerns.”
Other equities research analysts also recently issued reports about the company. ValuEngine raised Realty Income from a hold rating to a buy rating in a research note on Tuesday, October 23rd. Janney Montgomery Scott downgraded Realty Income from a buy rating to a neutral rating and set a $44.00 price target for the company. in a research note on Wednesday, August 29th. They noted that the move was a valuation call. JPMorgan Chase & Co. raised their price target on Realty Income from $57.00 to $58.00 and gave the stock a neutral rating in a research note on Monday, September 17th. Mitsubishi UFJ Financial Group raised Realty Income from a neutral rating to an overweight rating and raised their price target for the stock from $54.00 to $62.00 in a research note on Tuesday, July 10th. Finally, Wells Fargo & Co set a $65.00 price target on Realty Income and gave the stock a buy rating in a research note on Tuesday, September 4th. Nine investment analysts have rated the stock with a hold rating and six have given a buy rating to the company. The stock presently has a consensus rating of Hold and a consensus price target of $56.51.
Realty Income (NYSE:O) last announced its quarterly earnings data on Wednesday, August 1st. The real estate investment trust reported $0.34 EPS for the quarter, missing the Zacks’ consensus estimate of $0.79 by ($0.45). Realty Income had a return on equity of 5.05% and a net margin of 25.96%. The business had revenue of $328.90 million for the quarter, compared to analyst estimates of $311.95 million. During the same quarter in the previous year, the business posted $0.76 earnings per share. The company’s revenue was up 9.6% compared to the same quarter last year. Research analysts anticipate that Realty Income will post 3.18 EPS for the current year.
The business also recently disclosed a nov 18 dividend, which will be paid on Thursday, November 15th. Investors of record on Thursday, November 1st will be paid a $0.2205 dividend. This represents a dividend yield of 4.56%. The ex-dividend date is Wednesday, October 31st. Realty Income’s payout ratio is 86.60%.
In related news, COO Sumit Roy sold 18,682 shares of the firm’s stock in a transaction that occurred on Monday, August 6th. The stock was sold at an average price of $57.49, for a total value of $1,074,028.18. Following the transaction, the chief operating officer now directly owns 70,041 shares of the company’s stock, valued at approximately $4,026,657.09. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO John Case sold 35,000 shares of the firm’s stock in a transaction that occurred on Monday, August 6th. The shares were sold at an average price of $57.70, for a total value of $2,019,500.00. Following the completion of the transaction, the chief executive officer now directly owns 158,961 shares in the company, valued at $9,172,049.70. The disclosure for this sale can be found here. Insiders sold a total of 89,067 shares of company stock worth $5,142,150 over the last three months. 0.20% of the stock is owned by company insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of the business. Cypress Wealth Services LLC increased its position in Realty Income by 18.0% in the 3rd quarter. Cypress Wealth Services LLC now owns 5,681 shares of the real estate investment trust’s stock worth $323,000 after buying an additional 866 shares during the period. Glen Harbor Capital Management LLC grew its holdings in shares of Realty Income by 4.0% during the 2nd quarter. Glen Harbor Capital Management LLC now owns 24,582 shares of the real estate investment trust’s stock worth $1,322,000 after purchasing an additional 952 shares in the last quarter. Raymond James Financial Services Advisors Inc. grew its holdings in shares of Realty Income by 0.9% during the 2nd quarter. Raymond James Financial Services Advisors Inc. now owns 130,702 shares of the real estate investment trust’s stock worth $7,030,000 after purchasing an additional 1,177 shares in the last quarter. RB Capital Management LLC grew its holdings in shares of Realty Income by 8.8% during the 2nd quarter. RB Capital Management LLC now owns 14,601 shares of the real estate investment trust’s stock worth $785,000 after purchasing an additional 1,183 shares in the last quarter. Finally, HighPoint Advisor Group LLC grew its holdings in shares of Realty Income by 16.2% during the 3rd quarter. HighPoint Advisor Group LLC now owns 8,682 shares of the real estate investment trust’s stock worth $501,000 after purchasing an additional 1,209 shares in the last quarter. 68.33% of the stock is currently owned by institutional investors.
Realty Income Company Profile
Realty Income, The Monthly Dividend Company is an S&P 500 company dedicated to providing stockholders with dependable monthly income. The company is structured as a REIT, and its monthly dividends are supported by the cash flow from over 5,400 real estate properties owned under long-term lease agreements with regional and national commercial tenants.
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