Agree Realty (NYSE:ADC) Posts Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Agree Realty reported earnings of $1.10 EPS for the quarter, exceeding analyst expectations of $1.08 by $0.02.
• The company announced a monthly dividend increase to $0.262 per share, representing an annualized yield of 4.2% and a payout ratio of 186.90%.
• Significant insider activity was noted, with Director John Rakolta, Jr. purchasing 25,154 shares, contributing to a total insider ownership increase of 4.76%.

Agree Realty (NYSE:ADC - Get Free Report) posted its quarterly earnings results on Tuesday. The real estate investment trust reported $1.10 earnings per share for the quarter, topping analysts' consensus estimates of $1.08 by $0.02, Zacks reports. Agree Realty had a net margin of 28.16% and a return on equity of 3.47%. Agree Realty updated its FY 2025 guidance to 4.310-4.330 EPS.

Agree Realty Trading Down 1.1%

Shares of Agree Realty stock traded down $0.81 during mid-day trading on Tuesday, hitting $74.95. 1,573,259 shares of the stock were exchanged, compared to its average volume of 1,144,379. Agree Realty has a twelve month low of $67.58 and a twelve month high of $79.65. The stock has a market capitalization of $8.29 billion, a price-to-earnings ratio of 44.61, a price-to-earnings-growth ratio of 2.44 and a beta of 0.55. The company has a 50-day simple moving average of $72.25 and a 200 day simple moving average of $73.59. The company has a current ratio of 0.71, a quick ratio of 0.71 and a debt-to-equity ratio of 0.59.

Agree Realty Increases Dividend

The company also recently declared a monthly dividend, which will be paid on Friday, November 14th. Shareholders of record on Friday, October 31st will be paid a dividend of $0.262 per share. The ex-dividend date of this dividend is Friday, October 31st. This represents a c) annualized dividend and a dividend yield of 4.2%. This is an increase from Agree Realty's previous monthly dividend of $0.26. Agree Realty's dividend payout ratio is 186.90%.

Insider Activity

In other news, Director John Rakolta, Jr. purchased 25,154 shares of the firm's stock in a transaction on Tuesday, October 7th. The shares were bought at an average cost of $70.41 per share, with a total value of $1,771,093.14. Following the purchase, the director directly owned 553,700 shares of the company's stock, valued at approximately $38,986,017. This trade represents a 4.76% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Joey Agree bought 3,528 shares of the firm's stock in a transaction that occurred on Thursday, October 2nd. The stock was bought at an average cost of $70.63 per share, for a total transaction of $249,182.64. Following the completion of the transaction, the chief executive officer directly owned 638,688 shares of the company's stock, valued at approximately $45,110,533.44. The trade was a 0.56% increase in their position. The disclosure for this purchase can be found here. Insiders purchased 36,742 shares of company stock valued at $2,601,704 over the last quarter. 1.80% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Agree Realty

Hedge funds have recently modified their holdings of the stock. Northwestern Mutual Wealth Management Co. boosted its position in shares of Agree Realty by 158.9% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 580 shares of the real estate investment trust's stock worth $42,000 after acquiring an additional 356 shares during the last quarter. EverSource Wealth Advisors LLC boosted its position in shares of Agree Realty by 245.5% in the second quarter. EverSource Wealth Advisors LLC now owns 1,358 shares of the real estate investment trust's stock worth $99,000 after acquiring an additional 965 shares during the last quarter. EP Wealth Advisors LLC boosted its position in shares of Agree Realty by 18.7% in the second quarter. EP Wealth Advisors LLC now owns 4,758 shares of the real estate investment trust's stock worth $348,000 after acquiring an additional 751 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in Agree Realty during the second quarter valued at approximately $379,000. Finally, Corient Private Wealth LLC lifted its position in Agree Realty by 3.4% during the second quarter. Corient Private Wealth LLC now owns 6,217 shares of the real estate investment trust's stock valued at $454,000 after buying an additional 204 shares in the last quarter. 97.83% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the stock. JMP Securities reissued a "market perform" rating on shares of Agree Realty in a research note on Monday, June 30th. Wall Street Zen cut shares of Agree Realty from a "hold" rating to a "sell" rating in a research note on Sunday, July 13th. Barclays lowered their price objective on shares of Agree Realty from $78.00 to $77.00 and set an "equal weight" rating on the stock in a research note on Wednesday, August 20th. Evercore ISI increased their price objective on shares of Agree Realty from $83.00 to $85.00 and gave the company an "outperform" rating in a research note on Monday, September 15th. Finally, UBS Group increased their price objective on shares of Agree Realty from $80.00 to $82.00 and gave the company a "buy" rating in a research note on Tuesday, August 12th. Eight research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $80.63.

Agree Realty Company Profile

Agree Realty Corporation is a publicly traded real estate investment trust that is RETHINKING RETAIL through the acquisition and development of properties net leased to industry-leading, omni-channel retail tenants. As of December 31, 2023, the Company owned and operated a portfolio of 2,135 properties, located in 49 states and containing approximately 44.2 million square feet of gross leasable area.

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