Alexandria Real Estate Equities (NYSE:ARE) Reaches New 12-Month Low – Should You Sell?

Alexandria Real Estate Equities, Inc. (NYSE:ARE)’s stock price reached a new 52-week low on Monday . The company traded as low as $96.60 and last traded at $96.92, with a volume of 103675 shares. The stock had previously closed at $98.35.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on ARE. JMP Securities decreased 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. JPMorgan Chase & Co. cut Alexandria Real Estate Equities from an “overweight” rating to a “neutral” rating and decreased their price objective for the company from $133.00 to $121.00 in a report on Wednesday, November 27th. Royal Bank of Canada dropped their target price on Alexandria Real Estate Equities from $125.00 to $114.00 and set a “sector perform” rating on the stock in a report on Tuesday, December 17th. Wedbush reissued an “outperform” rating and issued a $110.00 price target (down from $120.00) on shares of Alexandria Real Estate Equities in a report on Friday, December 6th. Finally, BMO Capital Markets raised shares of Alexandria Real Estate Equities to a “hold” rating in a research note on Wednesday, September 25th. Nine investment analysts have rated the stock with a hold rating and four have given a buy rating to the company’s stock. According to data from MarketBeat.com, Alexandria Real Estate Equities presently has an average rating of “Hold” and an average price target of $124.82.

Alexandria Real Estate Equities Stock Performance

The company has a market cap of $17.05 billion, a price-to-earnings ratio of 59.48, a P/E/G ratio of 3.87 and a beta of 1.15. The stock’s fifty day simple moving average is $106.88 and its 200 day simple moving average is $114.43. The company has a current ratio of 0.20, a quick ratio of 0.20 and a debt-to-equity ratio of 0.56.

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

Alexandria Real Estate Equities Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, January 15th. Shareholders of record on Tuesday, December 31st will be issued a $1.32 dividend. This represents a $5.28 annualized dividend and a yield of 5.41%. This is a positive change from Alexandria Real Estate Equities’s previous quarterly dividend of $1.30. The ex-dividend date is Tuesday, December 31st. Alexandria Real Estate Equities’s payout ratio is presently 321.95%.

Alexandria Real Estate Equities declared that its Board of Directors has authorized a stock repurchase program on Monday, December 9th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the real estate investment trust to repurchase up to 2.7% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board believes its stock is undervalued.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in ARE. Catalyst Capital Advisors LLC acquired a new stake in shares of Alexandria Real Estate Equities in the 3rd quarter valued at $25,000. Ashton Thomas Securities LLC acquired a new position in Alexandria Real Estate Equities in the third quarter valued at approximately $30,000. Rothschild Investment LLC acquired a new position in Alexandria Real Estate Equities in the second quarter valued at approximately $33,000. Venturi Wealth Management LLC raised its holdings in Alexandria Real Estate Equities by 144.0% during 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 in the last quarter. Finally, Global X Japan Co. Ltd. acquired a new stake in Alexandria Real Estate Equities during the second quarter worth approximately $43,000. 96.54% of the stock is currently owned by institutional investors and hedge funds.

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.