Zacks Investment Research lowered shares of Alexandria Real Estate Equities (NYSE:ARE) from a buy rating to a hold rating in a report released on Friday morning.
According to Zacks, “Shares of Alexandria have outperformed the industry, in the past year. Further, the Zacks Consensus Estimate for fourth-quarter 2017 funds from operations (FFO) per share remained unchanged in a month’s time. The fundamentals of the life science industry remain strong and the company’s solid portfolio, consisting of Class A properties in upscale locations, enjoys high demand. This enables the company to enjoy high occupancy and generate steady rental revenues from its properties. Moreover, ushering in good news for shareholders, on Dec 4, 2017, the company announced a 5% sequential hike in quarterly cash dividend, reflecting robust cash flow and solid balance sheet. However, sale of non-core assets is anticipated to have a dilutive impact on earnings. Further rate hike add to its woes.”
ARE has been the subject of several other reports. Bank of America lifted their price target on Alexandria Real Estate Equities from $129.00 to $133.00 and gave the company a neutral rating in a research report on Monday, November 6th. Mizuho reiterated a buy rating and set a $140.00 price target on shares of Alexandria Real Estate Equities in a research report on Wednesday, November 1st. Canaccord Genuity reiterated a buy rating and set a $20.37 price target on shares of Alexandria Real Estate Equities in a research report on Monday, December 11th. National Bank Financial cut Alexandria Real Estate Equities from an outperform rating to a sector perform rating and reduced their price target for the company from $20.00 to $18.00 in a research report on Monday, October 23rd. Finally, Royal Bank of Canada reiterated a hold rating on shares of Alexandria Real Estate Equities in a research report on Monday, October 23rd. Four research analysts have rated the stock with a hold rating and five have issued a buy rating to the company’s stock. Alexandria Real Estate Equities presently has a consensus rating of Buy and a consensus price target of $99.91.
Shares of Alexandria Real Estate Equities (ARE) traded up $0.02 during trading hours on Friday, hitting $125.12. The stock had a trading volume of 1,622,004 shares, compared to its average volume of 799,754. Alexandria Real Estate Equities has a 1 year low of $106.89 and a 1 year high of $134.37. The stock has a market capitalization of $12,657.41, a PE ratio of 142.18, a price-to-earnings-growth ratio of 2.81 and a beta of 0.84. The company has a debt-to-equity ratio of 0.83, a quick ratio of 0.21 and a current ratio of 0.21.
Alexandria Real Estate Equities (NYSE:ARE) last announced its quarterly earnings data on Monday, October 30th. The real estate investment trust reported $0.55 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.51 by ($0.96). Alexandria Real Estate Equities had a return on equity of 3.69% and a net margin of 13.21%. The firm had revenue of $285.60 million during the quarter, compared to analysts’ expectations of $286.11 million. During the same quarter in the previous year, the business earned $1.39 earnings per share. The company’s revenue for the quarter was up 24.0% compared to the same quarter last year. research analysts expect that Alexandria Real Estate Equities will post 6.02 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Monday, January 15th. Investors of record on Friday, December 29th will be given a dividend of $0.90 per share. This is a boost from Alexandria Real Estate Equities’s previous quarterly dividend of $0.86. This represents a $3.60 annualized dividend and a yield of 2.88%. The ex-dividend date is Thursday, December 28th. Alexandria Real Estate Equities’s dividend payout ratio (DPR) is currently 409.10%.
In related news, EVP Thomas J. Andrews sold 5,000 shares of Alexandria Real Estate Equities stock in a transaction that occurred on Thursday, November 2nd. The stock was sold at an average price of $125.26, for a total transaction of $626,300.00. Following the completion of the transaction, the executive vice president now directly owns 146,916 shares in the company, valued at $18,402,698.16. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Joel S. Marcus sold 27,500 shares of Alexandria Real Estate Equities stock in a transaction that occurred on Monday, December 4th. The shares were sold at an average price of $129.60, for a total value of $3,564,000.00. Following the transaction, the chief executive officer now owns 623,936 shares of the company’s stock, valued at $80,862,105.60. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 62,250 shares of company stock valued at $7,986,230. 1.60% of the stock is owned by company insiders.
Several institutional investors have recently bought and sold shares of ARE. Muzinich & Co. Inc. increased its position in shares of Alexandria Real Estate Equities by 30.4% in the second quarter. Muzinich & Co. Inc. now owns 943 shares of the real estate investment trust’s stock valued at $114,000 after buying an additional 220 shares in the last quarter. Spirit of America Management Corp NY purchased a new stake in shares of Alexandria Real Estate Equities in the third quarter valued at approximately $154,000. Fox Run Management L.L.C. purchased a new stake in shares of Alexandria Real Estate Equities in the third quarter valued at approximately $226,000. California Capital Advisors Inc. purchased a new stake in shares of Alexandria Real Estate Equities in the third quarter valued at approximately $232,000. Finally, Simplex Trading LLC purchased a new stake in shares of Alexandria Real Estate Equities in the fourth quarter valued at approximately $244,000.
About Alexandria Real Estate Equities
Alexandria Real Estate Equities, Inc is a real estate investment (REIT). The Company is engaged in the business of providing space for lease to the life science and technology industries. It focuses on collaborative life science and technology campuses. It develops urban cluster campuses and ecosystems.
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