Key Points
- Director Sheila Mcgrath bought 3,100 shares at an average price of $45.60 on Dec. 10 (a $141,360 purchase), boosting her stake 58.6% to 8,392 shares valued at about $382,675.
- Board authorized a $500 million share buyback, permitting the REIT to repurchase up to roughly 6.4% of outstanding shares—a signal the board believes the stock may be undervalued.
- Recent results and analyst sentiment are mixed: the company missed quarterly EPS ($2.22 vs. $2.31 est.) with revenue down 5% year-over-year, and several analysts have lowered price targets leaving a consensus "Hold" rating (avg. target $72.43).
Alexandria Real Estate Equities, Inc. (NYSE:ARE - Get Free Report) Director Sheila Mcgrath acquired 3,100 shares of the stock in a transaction on Wednesday, December 10th. The shares were acquired at an average price of $45.60 per share, with a total value of $141,360.00. Following the transaction, the director directly owned 8,392 shares of the company's stock, valued at $382,675.20. The trade was a 58.58% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website.
Alexandria Real Estate Equities Stock Performance
Alexandria Real Estate Equities stock opened at $46.62 on Friday. The company's 50-day moving average price is $59.80 and its 200-day moving average price is $71.70. The company has a quick ratio of 0.24, a current ratio of 0.24 and a debt-to-equity ratio of 0.65. The company has a market cap of $8.06 billion, a PE ratio of -18.88, a price-to-earnings-growth ratio of 3.93 and a beta of 1.32. Alexandria Real Estate Equities, Inc. has a twelve month low of $44.10 and a twelve month high of $105.14.
Alexandria Real Estate Equities (NYSE:ARE - Get Free Report) last released its quarterly earnings results on Monday, October 27th. The real estate investment trust reported $2.22 EPS for the quarter, missing the consensus estimate of $2.31 by ($0.09). Alexandria Real Estate Equities had a negative return on equity of 1.89% and a negative net margin of 13.43%.The company had revenue of $751.94 million during the quarter, compared to analysts' expectations of $752.90 million. During the same quarter in the prior year, the business posted $2.37 EPS. The company's revenue was down 5.0% on a year-over-year basis. Alexandria Real Estate Equities has set its FY 2025 guidance at 8.980-9.040 EPS. On average, equities research analysts forecast that Alexandria Real Estate Equities, Inc. will post 9.32 EPS for the current fiscal year.
Alexandria Real Estate Equities declared that its board has authorized a stock buyback plan on Monday, December 8th that authorizes the company to buyback $500.00 million in outstanding shares. This buyback authorization authorizes the real estate investment trust to reacquire up to 6.4% of its shares through open market purchases. Shares buyback plans are often an indication that the company's board believes its stock is undervalued.
Alexandria Real Estate Equities Cuts Dividend
The business also recently announced a quarterly dividend, which will be paid on Thursday, January 15th. Stockholders of record on Wednesday, December 31st will be given a dividend of $0.72 per share. The ex-dividend date of this dividend is Wednesday, December 31st. This represents a $2.88 annualized dividend and a dividend yield of 6.2%. Alexandria Real Estate Equities's payout ratio is currently -213.77%.
Analyst Upgrades and Downgrades
A number of brokerages recently issued reports on ARE. BNP Paribas Exane lowered their price target on Alexandria Real Estate Equities from $72.00 to $50.00 and set an "underperform" rating for the company in a research report on Thursday, December 4th. Royal Bank Of Canada reduced their target price on shares of Alexandria Real Estate Equities from $98.00 to $65.00 and set a "sector perform" rating on the stock in a research note on Monday, November 3rd. Citigroup dropped their price target on shares of Alexandria Real Estate Equities from $61.00 to $52.00 and set a "neutral" rating for the company in a research note on Thursday, December 4th. Citizens Jmp lowered shares of Alexandria Real Estate Equities from an "outperform" rating to a "market perform" rating in a research report on Thursday, November 13th. Finally, BMO Capital Markets set a $60.00 price objective on shares of Alexandria Real Estate Equities in a research note on Thursday, December 4th. Four analysts have rated the stock with a Buy rating, seven have given a Hold rating and four have assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $72.43.
Get Our Latest Stock Report on Alexandria Real Estate Equities
Institutional Investors Weigh In On Alexandria Real Estate Equities
A number of institutional investors and hedge funds have recently added to or reduced their stakes in ARE. IFM Investors Pty Ltd grew its stake in Alexandria Real Estate Equities by 0.3% in the 3rd quarter. IFM Investors Pty Ltd now owns 58,544 shares of the real estate investment trust's stock worth $4,909,000 after acquiring an additional 150 shares in the last quarter. Presima Securities ULC boosted its holdings in shares of Alexandria Real Estate Equities by 1.4% in the first quarter. Presima Securities ULC now owns 11,895 shares of the real estate investment trust's stock valued at $1,100,000 after purchasing an additional 170 shares during the period. Kaufman Rossin Wealth LLC grew its stake in Alexandria Real Estate Equities by 6.3% in the third quarter. Kaufman Rossin Wealth LLC now owns 2,954 shares of the real estate investment trust's stock worth $246,000 after purchasing an additional 174 shares in the last quarter. CX Institutional increased its holdings in Alexandria Real Estate Equities by 13.8% during the 2nd quarter. CX Institutional now owns 1,445 shares of the real estate investment trust's stock worth $105,000 after purchasing an additional 175 shares during the period. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Alexandria Real Estate Equities by 0.9% during the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 23,443 shares of the real estate investment trust's stock valued at $1,711,000 after purchasing an additional 198 shares in the last quarter. Institutional investors own 96.54% of the company's stock.
About Alexandria Real Estate Equities
(
Get Free Report)
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.
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