Morgan Stanley Downgrades NNN REIT (NYSE:NNN) to Equal Weight

NNN REIT (NYSE:NNN) was downgraded by Morgan Stanley from an “overweight” rating to an “equal weight” rating in a research note issued to investors on Monday, MarketBeat Ratings reports. They currently have a $50.00 price target on the real estate investment trust’s stock. Morgan Stanley’s price target points to a potential upside of 2.31% from the stock’s previous close.

Other equities analysts also recently issued reports about the company. Weiss Ratings upgraded NNN REIT from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, May 29th. Citigroup lifted their target price on NNN REIT from $42.00 to $46.00 and gave the company a “neutral” rating in a research note on Thursday, May 7th. Wall Street Zen upgraded NNN REIT from a “sell” rating to a “hold” rating in a research report on Sunday, June 28th. Huntington initiated coverage on NNN REIT in a research note on Wednesday, July 15th. They issued an “outperform” rating and a $51.00 price target for the company. Finally, Wells Fargo & Company raised their price target on NNN REIT from $45.00 to $49.00 and gave the company an “equal weight” rating in a report on Wednesday, July 15th. Three equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, NNN REIT has a consensus rating of “Hold” and an average target price of $46.32.

NNN REIT Stock Performance

Shares of NNN stock traded down $0.72 during trading hours on Monday, reaching $48.87. The stock had a trading volume of 463,283 shares, compared to its average volume of 1,652,479. The firm has a market capitalization of $9.30 billion, a PE ratio of 23.69, a price-to-earnings-growth ratio of 7.64 and a beta of 0.80. The firm has a 50-day simple moving average of $45.78 and a 200-day simple moving average of $44.12. NNN REIT has a twelve month low of $38.90 and a twelve month high of $50.00. The company has a debt-to-equity ratio of 1.10, a current ratio of 0.63 and a quick ratio of 0.63.

NNN REIT (NYSE:NNN) last posted its earnings results on Thursday, April 30th. The real estate investment trust reported $0.50 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.51 by ($0.01). NNN REIT had a net margin of 41.38% and a return on equity of 8.81%. The firm had revenue of $240.42 million for the quarter, compared to analyst estimates of $237.75 million. During the same period in the previous year, the firm earned $0.87 earnings per share. The company’s revenue for the quarter was up 4.1% on a year-over-year basis. NNN REIT has set its FY 2026 guidance at 3.480-3.540 EPS. As a group, equities analysts forecast that NNN REIT will post 3.49 earnings per share for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in NNN. SG Americas Securities LLC raised its stake in shares of NNN REIT by 798.2% in the 1st quarter. SG Americas Securities LLC now owns 268,872 shares of the real estate investment trust’s stock valued at $11,301,000 after acquiring an additional 238,938 shares in the last quarter. BI Asset Management Fondsmaeglerselskab A S bought a new stake in NNN REIT during the first quarter worth approximately $2,165,000. Sound Income Strategies LLC grew its holdings in NNN REIT by 8.0% during the fourth quarter. Sound Income Strategies LLC now owns 469,045 shares of the real estate investment trust’s stock valued at $20,000,000 after purchasing an additional 34,852 shares during the last quarter. Tudor Investment Corp ET AL acquired a new position in NNN REIT during the fourth quarter valued at approximately $1,300,000. Finally, Horizon Investments LLC raised its position in shares of NNN REIT by 65.0% in the third quarter. Horizon Investments LLC now owns 77,022 shares of the real estate investment trust’s stock valued at $3,230,000 after purchasing an additional 30,333 shares during the period. Institutional investors and hedge funds own 89.96% of the company’s stock.

NNN REIT Company Profile

NNN REIT (NYSE: NNN), formally known as National Retail Properties, is a publicly traded real estate investment trust focused on acquiring, owning and managing a diversified portfolio of retail properties across the United States. As a net-lease REIT, the company enters into long-term, triple-net leases with national and regional tenants, shifting most property-related expenses, including maintenance, taxes and insurance, to its lessees. This structure provides NNN REIT with predictable cash flows and a stable income stream rooted in essential retail uses such as convenience stores, dollar stores, drug stores and quick-service restaurants.

Founded in 1984 and headquartered in Orlando, Florida, NNN REIT has steadily grown its footprint through disciplined acquisitions and selective lease underwriting.