Alexandria Real Estate Equities (NYSE:ARE) Sets New 12-Month Low on Analyst Downgrade

Shares of Alexandria Real Estate Equities, Inc. (NYSE:ARE) hit a new 52-week low during mid-day trading on Wednesday after Royal Bank of Canada lowered their price target on the stock from $125.00 to $114.00. Royal Bank of Canada currently has a sector perform rating on the stock. Alexandria Real Estate Equities traded as low as $99.96 and last traded at $100.00, with a volume of 888236 shares. The stock had previously closed at $102.31.

Other research analysts also recently issued research reports about the company. Citigroup downgraded Alexandria Real Estate Equities from a “buy” rating to a “neutral” rating and reduced their price objective for the stock from $130.00 to $125.00 in a report on Friday, September 13th. BMO Capital Markets raised Alexandria Real Estate Equities to a “hold” rating in a research note on Wednesday, September 25th. Evercore ISI lowered their price objective on Alexandria Real Estate Equities from $129.00 to $124.00 and set an “in-line” rating for the company in a research report on Wednesday, October 23rd. Deutsche Bank Aktiengesellschaft downgraded shares of Alexandria Real Estate Equities from a “buy” rating to a “hold” rating and cut their target price for the company from $135.00 to $112.00 in a research report on Friday, November 15th. Finally, Wedbush reiterated an “outperform” rating and set a $110.00 price target (down previously from $120.00) on shares of Alexandria Real Estate Equities in a research report on Friday, December 6th. Nine research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and a consensus price target of $124.82.

Institutional Investors Weigh In On Alexandria Real Estate Equities

Several large investors have recently bought and sold shares of the company. Catalyst Capital Advisors LLC bought a new stake in shares of Alexandria Real Estate Equities in the third quarter worth about $25,000. Ashton Thomas Securities LLC acquired a new stake in Alexandria Real Estate Equities during the 3rd quarter worth approximately $30,000. UMB Bank n.a. raised its holdings in Alexandria Real Estate Equities by 132.8% during the 2nd quarter. UMB Bank n.a. now owns 270 shares of the real estate investment trust’s stock worth $32,000 after buying an additional 154 shares during the period. Rothschild Investment LLC bought a new position in Alexandria Real Estate Equities in the second quarter valued at approximately $33,000. Finally, Venturi Wealth Management LLC boosted its holdings in shares of Alexandria Real Estate Equities by 144.0% in the third quarter. Venturi Wealth Management LLC now owns 305 shares of the real estate investment trust’s stock valued at $36,000 after buying an additional 180 shares during the period. Institutional investors own 96.54% of the company’s stock.

Alexandria Real Estate Equities Price Performance

The company has a debt-to-equity ratio of 0.56, a current ratio of 0.20 and a quick ratio of 0.20. The company’s 50-day moving average price is $110.67 and its 200-day moving average price is $115.53. The company has a market cap of $17.11 billion, a P/E ratio of 59.71, a P/E/G ratio of 3.87 and a beta of 1.14.

Alexandria Real Estate Equities (NYSE:ARE) last released its earnings results on Monday, October 21st. The real estate investment trust reported $0.96 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.38 by ($1.42). The firm had revenue of $791.60 million for the quarter, compared to the consensus estimate of $766.97 million. Alexandria Real Estate Equities had a return on equity of 1.31% and a net margin of 9.62%. Alexandria Real Estate Equities’s revenue for the quarter was up 10.9% on a year-over-year basis. During the same quarter last year, the company posted $2.26 EPS. As a group, sell-side analysts predict that Alexandria Real Estate Equities, Inc. will post 9.47 earnings per share for the current fiscal year.

Alexandria Real Estate Equities Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, January 15th. Shareholders of record on Tuesday, December 31st will be paid a $1.32 dividend. This is a boost from Alexandria Real Estate Equities’s previous quarterly dividend of $1.30. The ex-dividend date is Tuesday, December 31st. This represents a $5.28 annualized dividend and a yield of 5.39%. Alexandria Real Estate Equities’s payout ratio is presently 321.95%.

Alexandria Real Estate Equities declared that its Board of Directors has authorized a stock repurchase program on Monday, December 9th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the real estate investment trust to purchase up to 2.7% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s leadership believes its shares are undervalued.

Alexandria Real Estate Equities Company Profile

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.