As of the 4th quarter of 2023, Bahl & Gaynor Inc., a financial management firm, has raised its stake in Agree Realty Co. (NYSE:ADC) by 12.6%, according to a recent filing with the Securities & Exchange Commission. With the purchase of an additional 30,915 shares during that timeframe, Bahl & Gaynor now own 275,365 shares in total, which is equivalent to a value of $19,532,000 during that particular quarter. This represents a significant increase in ownership for the fund as it held only about 0.31% worth at the close of 2022.
On May 31st, shareholders who are holders of record will be issued with a monthly dividend worth $0.243 per share as per announcements made by the firm recently. The ex-dividend date is set at May 30th; all trades conducted after this date will no longer qualify for this payment arrangement under normal circumstances.
Agree Realty seems to be making headlines as CEO Joey Agree recently bought over five thousand shares of company stock on May 17th at an average cost per share of $65.35 for a total transaction cost of $326,750.00 based on reports issued by Securities & Exchange Commission filings available through public records. COO Craig Erlich also purchased fifteen hundred shares on the same day but at an average price range of $65.50 per share with a total transaction value amounting to $98,250.
Insiders have reportedly bought over twenty-nine thousand shares in Agree Realty over the past ninety days alone with insider ownership now representing about1 .60% of total company stock as stated within published SEC documents filed since January.
Despite concerns surrounding its payout ratio being deemed relatively high at around163%, many still consider it an attractive buy given comparable alternatives within its class lacking robust yields and appealing upside potential predicted to generate long-term stock growth.
[bs_forecast_slider ticker=”ADC”]
Agree Realty Attracts Large Investors Despite Mixed Ratings and Dividend Payout Ratio Concerns
Agree Realty (NYSE:ADC) is a real estate investment trust that has recently caught the attention of large investors. TCI Wealth Advisors Inc., 1620 Investment Advisors Inc., Evergreen Capital Management LLC, Ameritas Investment Partners Inc., and CWM LLC have all increased their stake in Agree Realty with additional share purchases during recent quarters.
Despite these investments, several research firms have weighed in with various ratings on ADC’s stock. StockNews.com issued a “sell” rating while JMP Securities downgraded Agree Realty from “outperform” to “market perform.” Analysts at Mizuho lowered the target price for ADC’s shares from $78 to $73 and assigned it a “neutral” rating. Stifel Nicolaus, on the other hand, raised its price target from $76.75 to $77.50.
According to Bloomberg.com, however, Agree Realty has an overall consensus rating of “Moderate Buy” with an average price target of $78.23.
The company also disclosed that shareholders of record as of May 31st will receive a $0.243 monthly dividend payable on June 14th. The ex-dividend date is May 30th, which represents an annualized dividend of $2.92 and a yield of 4.42%. However, Agree Realty’s payout ratio currently stands at 163.13%.
As for its stock performance on Friday, ADC traded down by $0.16 to reach $65.90 with a trading volume of around 348,450 shares compared to its average volume of 923,661 shares. Over the past year, it has had a low of $63.34 and high of $80.44.
Agree Realty latest quarterly earnings results were reported on May 5th where it missed consensus estimates by ($0.52) reporting earnings per share (EPS) at just $0.44 while analysts had predicted an EPS of $0.96. During the same period last year, the firm reported an EPS of $0.97. Despite the poor Q1 results, analysts believe that Agree Realty Co. will post a 3.94 EPS for this fiscal year.
Agree Realty Co. has a market capitalization of $6.14 billion and a P/E ratio of 36.91 which might make it an attractive option for investors seeking stability in the real estate investment sector.
