Alexandria Real Estate Equities (NYSE:ARE) Sets New 12-Month Low Following Analyst Downgrade

Alexandria Real Estate Equities, Inc. (NYSE:ARE)’s share price reached a new 52-week low during mid-day trading on Wednesday after Royal Bank of Canada lowered their price target on the stock from $125.00 to $114.00. Royal Bank of Canada currently has a sector perform rating on the stock. Alexandria Real Estate Equities traded as low as $99.96 and last traded at $100.00, with a volume of 888236 shares trading hands. The stock had previously closed at $102.31.

Several other analysts also recently commented on the stock. Citigroup downgraded shares of Alexandria Real Estate Equities from a “buy” rating to a “neutral” rating and decreased their price objective for the company from $130.00 to $125.00 in a research report on Friday, September 13th. JPMorgan Chase & Co. cut Alexandria Real Estate Equities from an “overweight” rating to a “neutral” rating and lowered their price target for the stock from $133.00 to $121.00 in a report on Wednesday, November 27th. BMO Capital Markets raised shares of Alexandria Real Estate Equities to a “hold” rating in a report on Wednesday, September 25th. Robert W. Baird reduced their price objective on shares of Alexandria Real Estate Equities from $137.00 to $130.00 and set an “outperform” rating on the stock in a research report on Friday, November 8th. Finally, JMP Securities dropped their target price on shares of Alexandria Real Estate Equities from $140.00 to $130.00 and set a “market outperform” rating for the company in a research report on Friday, November 15th. Nine research analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $124.82.

Institutional Trading of Alexandria Real Estate Equities

A number of institutional investors have recently bought and sold shares of the stock. Catalyst Capital Advisors LLC bought a new position in Alexandria Real Estate Equities during the third quarter valued at $25,000. Ashton Thomas Securities LLC purchased a new position in shares of Alexandria Real Estate Equities during the 3rd quarter worth about $30,000. UMB Bank n.a. grew its holdings in Alexandria Real Estate Equities by 132.8% during the 2nd quarter. UMB Bank n.a. now owns 270 shares of the real estate investment trust’s stock valued at $32,000 after purchasing an additional 154 shares during the last quarter. Rothschild Investment LLC purchased a new stake in Alexandria Real Estate Equities in the 2nd quarter worth about $33,000. Finally, Venturi Wealth Management LLC lifted its stake in Alexandria Real Estate Equities by 144.0% in the third quarter. Venturi Wealth Management LLC now owns 305 shares of the real estate investment trust’s stock worth $36,000 after purchasing an additional 180 shares during the last quarter. 96.54% of the stock is currently owned by institutional investors.

Alexandria Real Estate Equities Stock Down 0.7 %

The firm has a market cap of $17.00 billion, a PE ratio of 59.32, a price-to-earnings-growth ratio of 3.87 and a beta of 1.14. The company has a 50-day simple moving average of $110.31 and a 200-day simple moving average of $115.41. The company has a debt-to-equity ratio of 0.56, a current ratio of 0.20 and a quick ratio of 0.20.

Alexandria Real Estate Equities (NYSE:ARE) last posted its quarterly earnings data on Monday, October 21st. The real estate investment trust reported $0.96 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.38 by ($1.42). Alexandria Real Estate Equities had a net margin of 9.62% and a return on equity of 1.31%. The business had revenue of $791.60 million for the quarter, compared to analysts’ expectations of $766.97 million. During the same quarter in the previous year, the firm earned $2.26 EPS. Alexandria Real Estate Equities’s revenue was up 10.9% compared to the same quarter last year. Analysts expect that Alexandria Real Estate Equities, Inc. will post 9.47 earnings per share for the current fiscal year.

Alexandria Real Estate Equities Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, January 15th. Investors of record on Tuesday, December 31st will be paid a $1.32 dividend. This represents a $5.28 annualized dividend and a yield of 5.43%. The ex-dividend date of this dividend is Tuesday, December 31st. This is an increase from Alexandria Real Estate Equities’s previous quarterly dividend of $1.30. Alexandria Real Estate Equities’s dividend payout ratio (DPR) is currently 321.95%.

Alexandria Real Estate Equities announced that its board has initiated a stock repurchase plan on Monday, December 9th that authorizes the company to repurchase $500.00 million in shares. This repurchase authorization authorizes the real estate investment trust to repurchase up to 2.7% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.

About Alexandria Real Estate Equities

Alexandria Real Estate Equities, Inc (NYSE: ARE), an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle.