Alexandria Real Estate Equities, Inc. (NYSE:ARE) Given Average Recommendation of "Hold" by Brokerages

Key Points

• Analyst sentiment is cautious: Alexandria Real Estate Equities has an average rating of “Hold” from 16 analysts, with 2 sells, 11 holds, and 3 buys. The average 12-month price target is about $51.23.
• The stock jumped sharply: Shares were trading up 8.6% to $52.82, moving above both its 50-day and 200-day averages. The stock has ranged from $39.41 to $88.24 over the past year.
• Dividend and earnings details: The company declared a quarterly dividend of $0.72 per share, or $2.88 annualized, for a yield of about 5.5%. Its latest quarterly EPS matched estimates at $1.73, while revenue came in below expectations and fell 11.5% year over year.

Shares of Alexandria Real Estate Equities, Inc. (NYSE:ARE - Get Free Report) have earned an average rating of "Hold" from the sixteen analysts that are currently covering the firm, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a sell recommendation, eleven have assigned a hold recommendation and three have assigned a buy recommendation to the company. The average 12-month price target among brokerages that have updated their coverage on the stock in the last year is $51.2308.

ARE has been the topic of several research reports. Weiss Ratings restated a "sell (d)" rating on shares of Alexandria Real Estate Equities in a report on Monday, April 20th. BMO Capital Markets restated a "market perform" rating and issued a $52.00 price target (down from $65.00) on shares of Alexandria Real Estate Equities in a report on Wednesday, March 25th. Citigroup restated an "outperform" rating on shares of Alexandria Real Estate Equities in a report on Monday, May 4th. Wall Street Zen upgraded shares of Alexandria Real Estate Equities from a "sell" rating to a "hold" rating in a report on Saturday, May 2nd. Finally, Robert W. Baird restated a "neutral" rating and issued a $46.00 price target (down from $67.00) on shares of Alexandria Real Estate Equities in a report on Monday, May 4th.

Alexandria Real Estate Equities Trading Up 8.6%

NYSE ARE opened at $52.82 on Wednesday. Alexandria Real Estate Equities has a one year low of $39.41 and a one year high of $88.24. The company's 50 day moving average price is $46.14 and its 200 day moving average price is $49.91. The company has a debt-to-equity ratio of 0.65, a quick ratio of 0.20 and a current ratio of 0.20. The firm has a market capitalization of $9.20 billion, a price-to-earnings ratio of -8.42, a PEG ratio of 5.89 and a beta of 1.19.

Alexandria Real Estate Equities (NYSE:ARE - Get Free Report) last posted its quarterly earnings results on Monday, April 27th. The real estate investment trust reported $1.73 EPS for the quarter, meeting the consensus estimate of $1.73. Alexandria Real Estate Equities had a negative net margin of 36.03% and a negative return on equity of 5.21%. The firm had revenue of $671.02 million for the quarter, compared to analyst estimates of $684.78 million. During the same quarter last year, the firm posted $2.30 earnings per share. Alexandria Real Estate Equities's revenue for the quarter was down 11.5% compared to the same quarter last year. Alexandria Real Estate Equities has set its FY 2026 guidance at 6.300-6.500 EPS. On average, sell-side analysts predict that Alexandria Real Estate Equities will post 6.4 EPS for the current year.

Alexandria Real Estate Equities Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th will be issued a $0.72 dividend. The ex-dividend date is Tuesday, June 30th. This represents a $2.88 annualized dividend and a yield of 5.5%. Alexandria Real Estate Equities's dividend payout ratio (DPR) is presently -45.93%.

Insider Activity

In other news, EVP Hallie E. Kuhn sold 536 shares of Alexandria Real Estate Equities stock in a transaction that occurred on Friday, April 17th. The shares were sold at an average price of $48.20, for a total transaction of $25,835.20. Following the sale, the executive vice president owned 48,301 shares in the company, valued at $2,328,108.20. This trade represents a 1.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Chairman Joel S. Marcus acquired 7,500 shares of the company's stock in a transaction dated Tuesday, May 5th. The shares were purchased at an average price of $42.72 per share, for a total transaction of $320,400.00. Following the purchase, the chairman directly owned 587,724 shares of the company's stock, valued at approximately $25,107,569.28. This trade represents a 1.29% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 1.35% of the company's stock.

Institutional Trading of Alexandria Real Estate Equities

A number of hedge funds have recently made changes to their positions in ARE. Norges Bank purchased a new stake in shares of Alexandria Real Estate Equities during the fourth quarter valued at approximately $805,429,000. Invesco Ltd. raised its stake in shares of Alexandria Real Estate Equities by 57.9% during the fourth quarter. Invesco Ltd. now owns 6,033,304 shares of the real estate investment trust's stock valued at $295,270,000 after purchasing an additional 2,211,424 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in shares of Alexandria Real Estate Equities by 1,022.1% during the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,813,955 shares of the real estate investment trust's stock valued at $151,175,000 after purchasing an additional 1,652,298 shares during the period. Freestone Grove Partners LP purchased a new stake in shares of Alexandria Real Estate Equities during the fourth quarter valued at approximately $72,144,000. Finally, Goldman Sachs Group Inc. raised its stake in shares of Alexandria Real Estate Equities by 52.7% during the fourth quarter. Goldman Sachs Group Inc. now owns 3,582,387 shares of the real estate investment trust's stock valued at $175,322,000 after purchasing an additional 1,236,781 shares during the period. Hedge funds and other institutional investors own 96.54% of the company's stock.

About Alexandria Real Estate Equities

Alexandria Real Estate Equities, Inc NYSE: ARE is a real estate investment trust specializing in the ownership, development and management of collaborative life science and technology campuses. The company's properties are designed to support research and innovation by providing specialized laboratory, office and manufacturing space tailored to biotechnology, pharmaceutical, academic and related industries.

Since its founding in 1994, Alexandria has cultivated a diversified portfolio of campuses across leading innovation clusters in North America and Europe.

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