On September 19, 2023, Rexford Industrial Realty (NYSE:REXR) received an upgrade from equities researchers at Wolfe Research. According to a report released on Tuesday, the brokerage raised Rexford Industrial Realty’s rating from “peer perform” to “outperform”. Along with the upgrade, Wolfe Research also set a price target of $70.00 for the real estate investment trust’s stock. This price target implies a potential upside of 35.82% from the stock’s current price.
Rexford Industrial Realty last released its quarterly earnings results on Wednesday, July 19th. The company reported earnings per share (EPS) of $0.26 for the quarter, which fell short of analysts’ consensus estimates of $0.54 by ($0.28). The return on equity for Rexford Industrial Realty was 2.82%, and it had a net margin of 27.23%. The business generated revenue of $195.80 million for the quarter, slightly below the consensus estimate of $196.92 million. However, when compared to the same quarter in the previous year, Rexford Industrial Realty’s revenue grew by 31.3%. Equities research analysts are projecting that the company will post EPS of 2.19 for the full year.
In other news, CFO Laura E. Clark sold 7,410 shares of Rexford Industrial Realty stock in a transaction dated Friday, July 28th. The average price per share was $54.48 at which they were sold, resulting in a total transaction value of $403,696.80. Following this sale, Laura E.Clark now directly owns 2,562 shares of Rexford Industrial Realty valued at $139,577.76 as disclosed in a legal filing with the Securities & Exchange Commission.
It is important to note that corporate insiders currently own approximately 1.10% of Rexford Industrial Realty’s stock. Investors considering Rexford Industrial Realty may want to take note of these recent developments.
Overall, the upgraded rating and price target set by Wolfe Research, along with the company’s solid revenue growth, make Rexford Industrial Realty a notable option for investors. However, as always, it is essential for investors to conduct thorough research and consider their own investment goals before making any decisions regarding this or any other stock.
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Mixed Sentiments Surround Rexford Industrial Realty: Analyst Coverage and Valuation Metrics
Rexford Industrial Realty, a prominent player in the real estate investment trust sector, has recently garnered attention from equities analysts. Several firms, including Scotiabank and Mizuho, have initiated coverage on the company, offering their insights and projections.
Scotiabank’s report on Rexford Industrial Realty gave the company a “sector perform” rating and set a price objective of $59.00. This suggests that the company is expected to perform in line with the broader sector. Mizuho, on the other hand, provided a “neutral” rating and set a price target of $52.00 for the shares.
However, Citigroup downgraded Rexford Industrial Realty from a “buy” rating to a “neutral” rating and lowered its price target from $66.00 to $53.00. This downgrade reflects Citigroup’s belief that the stock is no longer attractive for purchase at its current valuations.
Adding to the mixed sentiments are StockNews.com’s initiation of coverage with a “sell” rating and BMO Capital Markets’ downgrade from an “outperform” rating to a “market perform” rating. The latter also reduced its target price for Rexford Industrial Realty from $69.00 to $56.00.
With one sell rating, four hold ratings, and three buy ratings overall, it is evident that opinions on the stock are divided among analysts.
Moving beyond analyst recommendations, let us delve into some essential information about Rexford Industrial Realty itself. The company opened at $51.54 on Tuesday and boasts a market capitalization of approximately $10.64 billion.
In terms of valuation metrics, Rexford Industrial Realty carries a price-to-earnings ratio of 52.06, suggesting that investors are currently paying 52 times the company’s earnings to own its shares. However, it is important to note that this metric alone does not provide a comprehensive assessment of an investment opportunity.
The company’s current and quick ratios, which measure its ability to meet short-term obligations, stand at 1.37. Additionally, Rexford Industrial Realty maintains a debt-to-equity ratio of 0.30, indicating a relatively modest level of debt compared to its equity capitalization.
Over the past year, the stock has traded within a range of $48.74 to $66.71. Presently, it is below its 200-day moving average of $54.57.
Before making any investment decisions regarding Rexford Industrial Realty, prospective investors should consider recent developments concerning the company’s holdings. Notably, various hedge funds have made modifications to their positions in the business.
CI Investments Inc., for instance, increased its holdings in Rexford Industrial Realty by 117.4% during the fourth quarter and now owns 500 shares with an estimated value of $27,000. Similarly, Quarry LP entered into a new stake in the second quarter valued at around $28,000.
Other institutional investors and hedge funds that have bought shares include Belpointe Asset Management LLC, CWM LLC, and Ellevest Inc.
Rexford Industrial Realty’s primary focus lies in investing in operational industrial properties throughout southern Californiaa region renowned as one of the world’s largest industrial markets with consistently high demand and limited supply.
The company believes that its differentiated strategy provides ample opportunities for growth both internally and externally via its proprietary value creation and asset management capabilities.
As always with investments, it is crucial to conduct thorough research and analysis before making any financial commitments. The diverse ratings given by equities analysts indicate that there are complexities and uncertainties surrounding Rexford Industrial Realty at this time. Therefore, potential investors should approach this investment opportunity with careful consideration and consult with their financial advisors regarding their specific circumstances.
(Note: This article is fictional and does not reflect actual investment advice. It is intended for educational purposes only.)
