Realty Income (NYSE:O) Price Target Raised to $63.00

Realty Income (NYSE:O) had its target price lifted by Truist Financial from $60.00 to $63.00 in a research report released on Tuesday morning, MarketBeat Ratings reports. The firm currently has a hold rating on the real estate investment trust’s stock.

Several other brokerages have also recently weighed in on O. Scotiabank cut Realty Income from a “sector outperform” rating to a “sector perform” rating and dropped their target price for the company from $67.00 to $59.00 in a report on Wednesday, September 23rd. Cantor Fitzgerald decreased their price target on Realty Income from $68.00 to $63.00 and set a “neutral” rating on the stock in a research note on Thursday, November 5th. Weiss Ratings cut Realty Income from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, October 30th. Royal Bank Of Canada boosted their price objective on Realty Income from $60.00 to $61.00 and gave the company an “outperform” rating in a research report on Tuesday, November 3rd. Finally, Huntington initiated coverage on Realty Income in a research note on Monday, November 2nd. They set a “strong-buy” rating for the company. Two analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $71.69.

Realty Income Stock Performance

NYSE:O opened at $59.26 on Tuesday. The business has a 50 day moving average of $56.94 and a 200 day moving average of $61.52. The company has a market capitalization of $56.36 billion, a price-to-earnings ratio of 13.48, a PEG ratio of 4.33 and a beta of 0.65. Realty Income has a 1-year low of $53.15 and a 1-year high of $67.93. The company has a debt-to-equity ratio of 0.74, a current ratio of 6.04 and a quick ratio of 6.04.

Realty Income (NYSE:O) last issued its quarterly earnings results on Monday, November 2nd. The real estate investment trust reported $0.43 EPS for the quarter, beating analysts’ consensus estimates of $0.41 by $0.02. Realty Income had a net margin of 21.85% and a return on equity of 3.27%. The business had revenue of $1.62 billion for the quarter, compared to analysts’ expectations of $1.43 billion. During the same period last year, the business earned $1.08 earnings per share. The business’s quarterly revenue was up 10.3% on a year-over-year basis. On average, sell-side analysts predict that Realty Income will post 4.44 earnings per share for the current fiscal year.

Realty Income Increases Dividend

The firm also recently declared a monthly dividend, which will be paid on Tuesday, December 15th. Investors of record on Monday, November 30th will be issued a dividend of $0.2740 per share. The ex-dividend date is Monday, November 30th. This represents a $3.29 dividend on an annualized basis and a yield of 5.5%. This is a boost from Realty Income’s previous monthly dividend of $0.2715. Realty Income’s dividend payout ratio (DPR) is presently 224.83%.

Institutional Investors Weigh In On Realty Income

Several institutional investors and hedge funds have recently bought and sold shares of O. BlackRock Inc. bought a new position in shares of Realty Income during the second quarter valued at approximately $6,997,219,000. Legal & General Group Plc bought a new stake in Realty Income in the second quarter valued at $643,334,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in Realty Income by 22,051.4% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 10,354,693 shares of the real estate investment trust’s stock valued at $641,577,000 after purchasing an additional 10,307,948 shares during the period. Bank of New York Mellon Corp purchased a new position in Realty Income during the 2nd quarter valued at $340,180,000. Finally, Hsbc Holdings PLC bought a new position in Realty Income in the 2nd quarter worth $319,222,000. Hedge funds and other institutional investors own 70.81% of the company’s stock.

Key Stories Impacting Realty Income

Investors following O have been watching these stories:

• Positive Sentiment: Realty Income raised its monthly dividend by 0.9% to $0.274 per share, its 137th increase since 1994. The payout represents an annualized $3.29 per share and a roughly 5.5% yield. Recent coverage cited AFFO growth, strong occupancy and a $10 billion investment target as support for dividend growth. Realty Income’s Dividend Growth: Can Strong AFFO Sustain It?
• Negative Sentiment: A valuation update trimmed its estimated fair value to $63.25 from $64.87, reflecting lower growth views and caution about higher rates, funding costs and REIT-sector multiples. Realty Income Stock Sees Modest Fair Value Cut
• Negative Sentiment: Recent coverage noted the 10-year Treasury touched 5%. Higher Treasury yields can make REIT dividends less attractive by comparison and pressure property-stock valuations. Realty Income Raised Its Dividend as the 10-Year Treasury Hit 5%

Realty Income Company Profile

Realty Income Corporation is a real estate investment trust (REIT) that owns and manages commercial properties leased to businesses. Its portfolio includes retail, industrial, gaming, and other properties, typically leased under long-term net lease agreements in which tenants are responsible for many property operating expenses. Founded in 1969, Realty Income is known as “The Monthly Dividend Company” for its monthly dividend payments. The company serves tenants across the United States and has expanded its property portfolio into Europe.