Citigroup Issues Pessimistic Forecast for Alexandria Real Estate Equities (NYSE:ARE) Stock Price

Key Points

• Citigroup lowered Alexandria Real Estate Equities’ price target from $50 to $42 while maintaining a neutral rating, implying roughly 4.7% upside from the reported $40.12 share price.
• Analyst sentiment remains cautious: MarketBeat reports a consensus “Reduce” rating and $49.36 target price, with two Buy, ten Hold, and four Sell ratings.
• Alexandria reported a sharp quarterly loss of $3.74 per share versus expectations for a $0.03 loss, while revenue declined 10.7% year over year to $671.18 million.

Alexandria Real Estate Equities (NYSE:ARE - Get Free Report) had its price objective decreased by Citigroup from $50.00 to $42.00 in a research report issued to clients and investors on Friday, Benzinga reports. The brokerage currently has a "neutral" rating on the real estate investment trust's stock. Citigroup's price objective indicates a potential upside of 4.69% from the company's current price.

ARE has been the subject of several other research reports. Wall Street Zen lowered Alexandria Real Estate Equities from a "hold" rating to a "sell" rating in a research note on Saturday, August 8th. BMO Capital Markets dropped their target price on shares of Alexandria Real Estate Equities from $52.00 to $48.00 and set a "market perform" rating on the stock in a research note on Monday, September 28th. Jefferies Financial Group lowered their target price on shares of Alexandria Real Estate Equities from $47.00 to $46.00 and set a "hold" rating on the stock in a research note on Thursday, September 24th. Cantor Fitzgerald reduced their price objective on Alexandria Real Estate Equities from $52.00 to $42.00 and set a "neutral" rating for the company in a research report on Wednesday. Finally, BNP Paribas Exane cut their price objective on shares of Alexandria Real Estate Equities from $40.00 to $37.00 and set an "underperform" rating for the company in a research report on Wednesday. Two research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and four have given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Reduce" and a consensus target price of $49.36.

Alexandria Real Estate Equities Stock Performance

Shares of Alexandria Real Estate Equities stock traded down $0.48 during trading hours on Friday, reaching $40.12. The company had a trading volume of 2,297,699 shares, compared to its average volume of 2,253,863. Alexandria Real Estate Equities has a one year low of $38.34 and a one year high of $59.76. The business has a fifty day simple moving average of $48.36 and a 200 day simple moving average of $49.77. The company has a debt-to-equity ratio of 0.65, a current ratio of 0.14 and a quick ratio of 0.19. The firm has a market cap of $6.99 billion, a PE ratio of -4.76 and a beta of 1.16.

Alexandria Real Estate Equities (NYSE:ARE - Get Free Report) last announced its quarterly earnings results on Monday, October 26th. The real estate investment trust reported ($3.74) earnings per share for the quarter, missing the consensus estimate of ($0.03) by ($3.71). Alexandria Real Estate Equities had a negative net margin of 51.81% and a negative return on equity of 7.52%. The company had revenue of $671.18 million for the quarter, compared to the consensus estimate of $646.26 million. During the same quarter in the prior year, the company earned $2.22 earnings per share. The company's quarterly revenue was down 10.7% on a year-over-year basis. On average, analysts anticipate that Alexandria Real Estate Equities will post 6.39 earnings per share for the current fiscal year.

Insider Activity at Alexandria Real Estate Equities

In other news, EVP Kristina Fukuzaki-Carlson sold 16,810 shares of the firm's stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $50.51, for a total value of $849,073.10. Following the completion of the sale, the executive vice president owned 39,152 shares in the company, valued at approximately $1,977,567.52. This trade represents a 30.04% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Andres Gavinet sold 10,000 shares of the company's stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $50.93, for a total value of $509,300.00. Following the transaction, the chief accounting officer directly owned 102,516 shares in the company, valued at approximately $5,221,139.88. This represents a 8.89% decrease in their position. The SEC filing for this sale provides additional information. 1.35% of the stock is owned by insiders.

Institutional Trading of Alexandria Real Estate Equities

Institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. purchased a new stake in shares of Alexandria Real Estate Equities during the second quarter worth approximately $1,146,423,000. Dimensional Fund Advisors LP increased its stake in Alexandria Real Estate Equities by 2.3% during the first quarter. Dimensional Fund Advisors LP now owns 2,297,222 shares of the real estate investment trust's stock worth $106,638,000 after acquiring an additional 52,733 shares during the last quarter. Bank of New York Mellon Corp acquired a new position in Alexandria Real Estate Equities in the second quarter valued at about $79,253,000. Legal & General Group Plc acquired a new stake in Alexandria Real Estate Equities in the 2nd quarter valued at approximately $76,647,000. Finally, Hsbc Holdings PLC acquired a new position in Alexandria Real Estate Equities during the 2nd quarter worth about $64,485,000. 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 that owns, operates and develops collaborative life science, agtech and advanced technology campuses. Its properties are designed for companies, research institutions and government agencies engaged in biotechnology, pharmaceuticals, medical devices, agriculture technology and related fields.

The company provides laboratory, office and research space, along with supporting amenities and infrastructure intended to foster collaboration among its tenants.

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