Zacks Investment Research upgraded shares of Alexandria Real Estate Equities (NYSE:ARE) from a hold rating to a buy rating in a research note issued to investors on Monday. They currently have $139.00 price target on the real estate investment trust’s stock.
According to Zacks, “Shares of Alexandria have underperformed its industry in the past month. However, the trend in estimate revisions of current-year funds from operations (FFO) per share indicates a favorable outlook for the company. In November, Alexandria announced that it has commenced development of a 175,000 rentable square feet (RSF) Class A property on its Maryland campus at 9800 Medical Center Drive. The move comes as part of its effort to enhance property base in key locations. Moreover, Alexandria witnessed record rental rate growth of 35.4% in third-quarter 2018, which marked the highest increase over the past 10 years. Notably, strong fundamentals of the life-science industry are helping the company’s Class A properties in upscale locations to enjoy high occupancy. Its effort to improve credit profile is also encouraging. But, the company’s huge development pipeline exposes it to the risk of rising construction costs.”
Several other equities analysts also recently issued reports on the company. Barclays reduced their price objective on Alexandria Real Estate Equities from $126.00 to $125.00 and set an overweight rating for the company in a research report on Monday. Citigroup upgraded Alexandria Real Estate Equities from a neutral rating to a buy rating and boosted their price objective for the stock from $133.00 to $144.00 in a research report on Monday. Finally, Evercore ISI set a $148.00 price objective on Alexandria Real Estate Equities and gave the stock a buy rating in a research report on Monday, October 15th. Eight investment analysts have rated the stock with a buy rating, The company has a consensus rating of Buy and an average price target of $120.34.
Alexandria Real Estate Equities (NYSE:ARE) last issued its earnings results on Monday, October 29th. The real estate investment trust reported $1.99 EPS for the quarter, beating the Zacks’ consensus estimate of $0.49 by $1.50. Alexandria Real Estate Equities had a return on equity of 6.50% and a net margin of 34.48%. The company had revenue of $341.80 million during the quarter, compared to the consensus estimate of $343.42 million. During the same period in the previous year, the firm posted $1.51 earnings per share. Alexandria Real Estate Equities’s quarterly revenue was up 19.7% compared to the same quarter last year. On average, analysts predict that Alexandria Real Estate Equities will post 6.62 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Tuesday, January 15th. Investors of record on Monday, December 31st will be issued a dividend of $0.97 per share. This is a boost from Alexandria Real Estate Equities’s previous quarterly dividend of $0.93. The ex-dividend date is Friday, December 28th. This represents a $3.88 annualized dividend and a yield of 3.05%. Alexandria Real Estate Equities’s payout ratio is presently 61.79%.
In related news, insider Daniel J. Ryan sold 7,000 shares of the business’s stock in a transaction that occurred on Monday, September 10th. The stock was sold at an average price of $127.66, for a total transaction of $893,620.00. Following the sale, the insider now owns 132,781 shares of the company’s stock, valued at $16,950,822.46. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director James P. Cain sold 450 shares of the business’s stock in a transaction that occurred on Thursday, November 1st. The stock was sold at an average price of $122.23, for a total value of $55,003.50. Following the sale, the director now directly owns 3,040 shares in the company, valued at approximately $371,579.20. The disclosure for this sale can be found here. In the last three months, insiders have sold 39,950 shares of company stock worth $4,977,349. 1.41% of the stock is owned by corporate insiders.
A number of large investors have recently made changes to their positions in ARE. Advisors Preferred LLC raised its holdings in Alexandria Real Estate Equities by 142.3% during the second quarter. Advisors Preferred LLC now owns 860 shares of the real estate investment trust’s stock worth $109,000 after purchasing an additional 505 shares in the last quarter. Point72 Hong Kong Ltd bought a new stake in Alexandria Real Estate Equities during the second quarter worth approximately $164,000. NumerixS Investment Technologies Inc bought a new stake in Alexandria Real Estate Equities during the second quarter worth approximately $177,000. Private Advisor Group LLC bought a new stake in Alexandria Real Estate Equities during the second quarter worth approximately $206,000. Finally, Alethea Capital Management LLC bought a new stake in Alexandria Real Estate Equities during the third quarter worth approximately $207,000.
About Alexandria Real Estate Equities
Alexandria Real Estate Equities, Inc (NYSE:ARE), an S&P 500 company, is an urban office real estate investment trust ("REIT") uniquely focused on collaborative life science and technology campuses in AAA innovation cluster locations, with a total market capitalization of $18.8 billion and an asset base in North America of 32.0 million SF as of June 30, 2018.
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