Alexandria Real Estate Equities (NYSE:ARE) Reaches New 1-Year 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 changing hands. The stock had previously closed at $102.31.

Several other analysts have also recently commented on ARE. JPMorgan Chase & Co. cut shares of Alexandria Real Estate Equities from an “overweight” rating to a “neutral” rating and decreased their price target for the stock from $133.00 to $121.00 in a research note on Wednesday, November 27th. BMO Capital Markets upgraded Alexandria Real Estate Equities to a “hold” rating in a report on Wednesday, September 25th. Evercore ISI decreased their price objective on Alexandria Real Estate Equities from $129.00 to $124.00 and set an “in-line” rating on the stock in a report on Wednesday, October 23rd. JMP Securities cut 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 report on Friday, November 15th. Finally, Deutsche Bank Aktiengesellschaft downgraded shares of Alexandria Real Estate Equities from a “buy” rating to a “hold” rating and reduced their target price for the stock from $135.00 to $112.00 in a report on Friday, November 15th. Nine investment 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 has an average rating of “Hold” and an average price target of $124.82.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Copley Financial Group Inc. purchased a new position in Alexandria Real Estate Equities in the third quarter valued at about $420,000. Inspire Trust Co. N.A. increased its position in shares of Alexandria Real Estate Equities by 17.6% during the third quarter. Inspire Trust Co. N.A. now owns 10,000 shares of the real estate investment trust’s stock worth $1,188,000 after purchasing an additional 1,500 shares in the last quarter. Tidal Investments LLC raised its stake in Alexandria Real Estate Equities by 26.6% in the third quarter. Tidal Investments LLC now owns 16,808 shares of the real estate investment trust’s stock valued at $1,996,000 after buying an additional 3,535 shares during the last quarter. Wilmington Savings Fund Society FSB acquired a new stake in Alexandria Real Estate Equities in the third quarter worth about $43,000. Finally, Virtu Financial LLC acquired a new position in shares of Alexandria Real Estate Equities during the third quarter valued at about $276,000. 96.54% of the stock is currently owned by institutional investors.

Alexandria Real Estate Equities Stock Down 2.3 %

The company has a current ratio of 0.20, a quick ratio of 0.20 and a debt-to-equity ratio of 0.56. The stock has a market capitalization of $17.48 billion, a PE ratio of 60.98, a price-to-earnings-growth ratio of 3.87 and a beta of 1.14. The company’s 50-day moving average is $111.00 and its 200 day moving average is $115.66.

Alexandria Real Estate Equities (NYSE:ARE) last posted its earnings results on Monday, October 21st. The real estate investment trust reported $0.96 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.38 by ($1.42). The firm 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 company’s revenue was up 10.9% compared to the same quarter last year. During the same period in the previous year, the company earned $2.26 earnings per share. As a group, analysts anticipate that Alexandria Real Estate Equities, Inc. will post 9.47 EPS for the current year.

Alexandria Real Estate Equities Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, January 15th. Stockholders of record on Tuesday, December 31st will be issued a dividend of $1.32 per share. This is a boost from Alexandria Real Estate Equities’s previous quarterly dividend of $1.30. This represents a $5.28 annualized dividend and a dividend yield of 5.28%. The ex-dividend date of this dividend is Tuesday, December 31st. Alexandria Real Estate Equities’s payout ratio is currently 321.95%.

Alexandria Real Estate Equities declared that its Board of Directors has approved a share repurchase program on Monday, December 9th that permits the company to buyback $500.00 million in outstanding shares. This buyback authorization permits the real estate investment trust to purchase up to 2.7% of its shares through open market purchases. Shares buyback programs are usually a sign 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.