May 28, 2023 – PNC Financial Services Group Inc. has recently increased its holdings in the New York Stock Exchange (NYSE) listed Alexandria Real Estate Equities Inc. with a 26.3% rise in the past quarter according to their filing with the SEC. The additional shares, amounting to 3,108, bring PNC’s total ownership of Alexandria’s stock to 14,919 which is valued at $2,173,000. This recent purchase proves that PNC believes that Alexandria is a worthwhile investment trust whose performance is expected to improve positively.
Founded in 1994 by Joel S. Marcus, Alexandria Real Estate Equities constructs a range of properties such as offices and technology centers for companies in the life science industry including healthcare and biotechnology firms. These facilities are designed to increase innovation and collaboration among these scientific organizations which are essential factors for progress within this sector.
Alexandria Real Estate Equities announced their quarterly dividend payment on April 14th worth $1.21 per share paid on May 5th to registered shareholders as of March 31st with an ex-dividend date of March 30th. This equates to a $4.84 yearly payout per share representing a yield of rate of return on investment of approximately 4.33%. Despite this impressive growth factor for investors who own shares within the firm, it also indicates that Alexandria paid more than they earned during this period.
Recent figures have shown that Chairman Joel S. Marcus made a significant sale of his personal stocks amounting to over $900k on May 8th following its falling share prices over the week before; resulting in him currently holding just under two percent direct ownership backing out from his prior three percent holding at an average price per share sold being $122.20.
In conclusion, despite successive distributions being over and above what was earned by revenue gain throughout the said period; given Alexandria Real Estate Equities’ successful growth within the market and stable performance, PNC’s recent purchase of additional shares showcases their long-term confidence in this diverse investment opportunity.
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Institutional Investors and Hedge Funds Show Interest in Alexandria Real Estate Equities
Alexandria Real Estate Equities (NYSE:ARE) has recently gained the attention of several institutional investors and hedge funds who have either added or reduced their stakes in the company. For instance, Canada Pension Plan Investment Board increased its stake by 29.2% during the third quarter of 2022, while Centersquare Investment Management LLC raised its position by 188.7% in the first quarter of 2023. Moreover, Prudential Financial Inc. raised its position by 323.6% in the first quarter of this year.
Several analysts have weighed in on Alexandria Real Estate Equities stock, with JPMorgan Chase & Co. upping their price objective from $176 to $177 and giving a “moderate buy” rating to the stock. StockNews.com upgraded shares from a “sell” rating to a “hold” rating and Robert W. Baird raised their price objective to $174 with an “outperform” rating.
The firm recently paid a quarterly dividend of $1.21 per share to shareholders on Friday, April 14th, amounting to an annualized yield of 4.33%. However, Alexandria Real Estate Equities’s dividend payout ratio is currently at 106.84%.
With a market cap of $19.34 billion, a PE ratio of 24.67, and a beta of 0.93 as per May 28th data, Alexandria Real Estate Equities had its initial public offering under NYSE ticker symbol ARE on May 30th, 1997.
Alexandria Real Estate Equities reported earnings data on April 25th for the last fiscal quarter ending that March where they missed expectations for earnings per share by ($1.71), with revenue reaching $700 million compared to estimates expecting revenue of $686 million.
Sell-side analysts forecast projections that Alexandria Real Estate Equities will post earnings per share (EPS) of 8.95 for this fiscal year. Despite its mixed earnings report, several hedge funds and institutional investors seem to be interested in the growth potential of Alexandria Real Estate Equities, as other analysts give a “moderate buy” rating overall.
