Avalon Investment & Advisory, a notable institutional investor, has recently increased its holdings in Alexandria Real Estate Equities, Inc. (NYSE:ARE) by 8.2% during the first quarter of this year. According to the Securities and Exchange Commission (SEC), Avalon Investment & Advisory now owns 127,678 shares of the real estate investment trust’s stock, having purchased an additional 9,700 shares during this period. As per their most recent SEC filing, these shares are estimated to be worth approximately $16,035,000.
Alexandria Real Estate Equities (NYSE:ARE) released its earnings report on July 25th of this year. The company revealed earnings per share of $0.51 for the quarter, falling short of the consensus estimate of $2.20 by ($1.69). However, they reported revenue amounting to $713.90 million for the same period, surpassing the market’s estimate of $700.22 million. Comparing these figures to last year’s performance, Alexandria Real Estate Equities observed a growth rate of 10.9% in revenue. On a positive note, the company exhibited a return on equity of 2.54% and a net margin of 20.65%. In the previous year’s corresponding quarter, they recorded earnings per share amounting to $2.10.
Sell-side analysts project that Alexandria Real Estate Equities will post earnings per share (EPS) totaling 8.96 for the current fiscal year.
These latest developments indicate Avalon Investment & Advisory’s confidence in Alexandria Real Estate Equities as an attractive investment option within the real estate sector. Investors may want to keep an eye on further updates and announcements from both parties as they navigate through evolving market conditions.
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Hedge Funds and Institutional Investors Drive Activity in Alexandria Real Estate Equities
Alexandria Real Estate Equities, Inc., a prominent real estate investment trust (REIT), has recently seen significant activity from various hedge funds and institutional investors. The surge in buying and selling of shares has raised eyebrows within the financial industry.
One notable example is Spire Wealth Management, which increased its stake in Alexandria Real Estate Equities by an impressive 115.8% during the first quarter of this year. This move saw Spire Wealth Management acquire an additional 132 shares of the company’s stock after already owning 246 shares. The total value of their stake now stands at $31,000.
Similarly, EverSource Wealth Advisors LLC also jumped on board with a 107.4% increase in their stake during the fourth quarter of last year. They purchased an additional 131 shares, bringing their total ownership to 253 shares worth $37,000.
The trend continued with Resurgent Financial Advisors LLC entering the scene during the same period and acquiring a new stake valued at $38,000. Clear Street Markets LLC followed suit by increasing its stake by a hefty 104.6% in the first quarter of this year, purchasing an additional 158 shares totaling $39,000.
Lastly, HM Payson & Co., demonstrating its confidence in the company’s potential, doubled its stake during the first quarter by buying an additional 200 shares valued at $50,000.
Consequently, it is evident that institutional investors and hedge funds hold a significant portion of Alexandria Real Estate Equities’ stock, accounting for approximately 86.36%.
On September 10, 2023, Alexandria Real Estate Equities’ stock experienced a decline as it traded down $1.35 to reach $115.01 per share. Interestingly enough though, over half a million shares (591,108) were exchanged throughout that day’s trading session – indicative of active market participation.
Analyzing historical performance reveals both a 50-day moving average price of $119.02 and a 200-day moving average price of $121.73. Therefore, the current trading price lies below its recent shorter-term average but remains relatively close to its longer-term average.
The company’s financial health appears stable, as reflected by a quick ratio and current ratio both measuring at 0.39 – suggesting a sufficient ability to meet short-term obligations. Furthermore, Alexandria Real Estate Equities’ market capitalization stands at an impressive $19.90 billion, underscoring its significance within the market.
With a price-to-earnings ratio of 34.13 and a P/E/G ratio of 3.21, investors might question whether the stock is overvalued or undervalued in relation to its earnings growth potential. Adding to this analysis is the fact that the stock possesses a beta of 0.94, indicating it has historically been less volatile than the broader market.
In light of recent updates, Alexandria Real Estate Equities announced a quarterly dividend that will be paid on Friday, October 13th. Shareholders who are registered on Friday, September 29th will receive a dividend payout of $1.24 per share.
A noteworthy aspect to consider is that this dividend represents an annualized rate of $4.96 per share – accounting for an impressive yield of 4.31%. However, such generous dividends could lead investors to question whether they are sustainable given the current dividend payout ratio of 147.18%.
Numerous research reports have been published regarding are’s financial outlook and performance metrics by industry experts evaluators, with Evercore ISI lowering their target price from $137.00 to $135.00 whilst maintaining an “outperform” rating for the company.
Additionally, Jefferies Financial Group initiated research coverage on Alexandria Real Estate Equities and assigned it a “buy” rating alongside a target price of $142.00 per share.
In contrast, JMP Securities lowered the price objective to $160.00 from $180.00 but maintained a “market outperform” rating for the company.
Lastly, StockNews.com expressed a rather bearish sentiment towards Alexandria Real Estate Equities and gave it a “sell” rating.
Despite these contrasting opinions, Bloomberg reported that the stock currently holds a consensus rating of “Moderate Buy.” Curiously, the consensus price target stands at $160.63, suggesting potential appreciation in the stock’s value.
As September 2023 progresses, investors await further developments surrounding Alexandria Real Estate Equities and the impact it may have on its stock performance. As always, thorough research should be conducted before making any investment decisions regarding this prominent real estate investment trust.