Digital Realty Trust (NYSE:DLR) Price Target Lowered to $235.00 at HSBC

Key Points

• HSBC lowered Digital Realty Trust’s price target from $240 to $235 but maintained a “buy” rating, implying approximately 29.7% upside from the stock’s $181.14 opening price.
• Analyst sentiment remains favorable, with a “Moderate Buy” consensus and an average price target of $219.69; ratings include one Strong Buy, 26 Buys, and six Holds.
• Digital Realty’s latest quarter produced $1.92 billion in revenue, up 28.9% year over year and above estimates, but EPS of $1.21 missed expectations of $1.98. Shares were down 2.4%, while institutional investors owned 99.71% of the stock.

Digital Realty Trust (NYSE:DLR - Get Free Report) had its price target dropped by HSBC from $240.00 to $235.00 in a research note issued on Wednesday. The brokerage currently has a "buy" rating on the real estate investment trust's stock. HSBC's price target indicates a potential upside of 29.73% from the stock's current price.

Several other equities research analysts have also recently weighed in on DLR. Evercore reaffirmed an "outperform" rating and issued a $240.00 target price on shares of Digital Realty Trust in a report on Tuesday, August 18th. Truist Financial lowered their price target on Digital Realty Trust from $225.00 to $220.00 and set a "buy" rating for the company in a report on Thursday, July 30th. Wall Street Zen upgraded Digital Realty Trust from a "sell" rating to a "hold" rating in a research report on Saturday, July 25th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $229.00 price objective on shares of Digital Realty Trust in a research note on Monday, July 27th. Finally, JPMorgan Chase & Co. lifted their target price on Digital Realty Trust from $230.00 to $235.00 and gave the company an "overweight" rating in a research report on Friday, July 24th. One analyst has rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $219.69.

Digital Realty Trust Trading Down 2.4%

Shares of Digital Realty Trust stock opened at $181.14 on Wednesday. The company has a quick ratio of 1.06, a current ratio of 1.06 and a debt-to-equity ratio of 0.68. Digital Realty Trust has a 12-month low of $146.23 and a 12-month high of $208.14. The company has a market capitalization of $67.20 billion, a price-to-earnings ratio of 87.93, a PEG ratio of 3.56 and a beta of 1.02. The firm's 50-day moving average price is $188.27 and its two-hundred day moving average price is $187.22.

Digital Realty Trust (NYSE:DLR - Get Free Report) last issued its earnings results on Thursday, July 23rd. The real estate investment trust reported $1.21 EPS for the quarter, missing the consensus estimate of $1.98 by ($0.77). The firm had revenue of $1.92 billion during the quarter, compared to analyst estimates of $1.66 billion. Digital Realty Trust had a net margin of 11.80% and a return on equity of 3.34%. Digital Realty Trust's quarterly revenue was up 28.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.87 earnings per share. Digital Realty Trust has set its FY 2026 guidance at 8.150-8.200 EPS. On average, analysts forecast that Digital Realty Trust will post 8.4 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Mark Patterson sold 200 shares of the business's stock in a transaction on Thursday, August 27th. The stock was sold at an average price of $193.96, for a total transaction of $38,792.00. Following the sale, the director owned 6,322 shares in the company, valued at $1,226,215.12. The trade was a 3.07% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.15% of the stock is owned by corporate insiders.

Institutional Trading of Digital Realty Trust

A number of hedge funds have recently made changes to their positions in DLR. Gables Capital Management Inc. bought a new position in shares of Digital Realty Trust during the second quarter valued at $29,000. Bell Investment Advisors Inc increased its holdings in Digital Realty Trust by 56.9% in the first quarter. Bell Investment Advisors Inc now owns 171 shares of the real estate investment trust's stock valued at $31,000 after purchasing an additional 62 shares during the period. Solstein Capital LLC bought a new position in Digital Realty Trust during the 2nd quarter worth $32,000. Danske Bank A S acquired a new position in Digital Realty Trust during the 2nd quarter worth about $39,000. Finally, MCF Advisors LLC acquired a new stake in shares of Digital Realty Trust in the fourth quarter valued at about $35,000. 99.71% of the stock is owned by institutional investors and hedge funds.

About Digital Realty Trust

Digital Realty Trust, Inc is a real estate investment trust that owns, operates and develops data centers around the world. The company provides the physical infrastructure businesses need to house information technology equipment, cloud-computing resources and critical digital systems.

Its services include data center colocation, hyperscale facilities, interconnection and related infrastructure solutions. Through its PlatformDIGITAL offering, Digital Realty helps customers connect to cloud providers, network operators, internet service providers, enterprises and other digital ecosystems.

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