Royal Bank Of Canada Issues Pessimistic Forecast for Alexandria Real Estate Equities (NYSE:ARE) Stock Price

Key Points

• Royal Bank of Canada cut Alexandria Real Estate Equities’ price target from $51 to $47 while maintaining a “sector perform” rating, implying 12.17% upside from the prior close.
• Analyst sentiment remains cautious: ARE has a consensus “Reduce” rating and an average price target of $49.79, based on two Buy, ten Hold, and four Sell ratings.
• Shares fell 1.6% to $41.90, while the company reported a significant quarterly EPS miss of $3.74 and year-over-year revenue decline of 10.7%, despite revenue exceeding estimates.

Alexandria Real Estate Equities (NYSE:ARE - Get Free Report) had its price target reduced by equities research analysts at Royal Bank Of Canada from $51.00 to $47.00 in a report released on Tuesday, Benzinga reports. The firm presently has a "sector perform" rating on the real estate investment trust's stock. Royal Bank Of Canada's price objective would suggest a potential upside of 12.17% from the stock's previous close.

Other equities research analysts have also recently issued reports about the stock. The Goldman Sachs Group lifted their price objective on shares of Alexandria Real Estate Equities from $54.00 to $59.00 and gave the stock a "neutral" rating in a research report on Friday, September 18th. Raymond James Financial set a $41.00 target price on Alexandria Real Estate Equities in a report on Monday, October 12th. JPMorgan Chase & Co. lowered Alexandria Real Estate Equities from a "neutral" rating to an "underweight" rating and set a $56.00 target price on the stock. in a report on Thursday, September 24th. Weiss Ratings restated a "sell (d)" rating on shares of Alexandria Real Estate Equities in a research note on Thursday, October 15th. Finally, Jefferies Financial Group decreased their price target on Alexandria Real Estate Equities from $47.00 to $46.00 and set a "hold" rating for the company in a report on Thursday, September 24th. Two investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Reduce" and an average target price of $49.79.

Alexandria Real Estate Equities Stock Down 1.6%

Shares of NYSE:ARE traded down $0.67 during trading on Tuesday, hitting $41.90. The company's stock had a trading volume of 75,393 shares, compared to its average volume of 2,246,329. Alexandria Real Estate Equities has a fifty-two week low of $38.34 and a fifty-two week high of $59.76. The business has a 50 day moving average price of $47.88 and a two-hundred day moving average price of $49.64. The company has a debt-to-equity ratio of 0.65, a quick ratio of 0.19 and a current ratio of 0.14. The company has a market capitalization of $7.30 billion, a PE ratio of -5.01 and a beta of 1.16.

Alexandria Real Estate Equities (NYSE:ARE - Get Free Report) last announced its quarterly earnings data on Monday, October 26th. The real estate investment trust reported ($3.74) earnings per share (EPS) 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 during the quarter, compared to analyst estimates of $646.26 million. During the same quarter in the previous year, the business posted $2.22 earnings per share. The firm's revenue was down 10.7% on a year-over-year basis. As a group, research analysts expect that Alexandria Real Estate Equities will post 6.39 EPS for the current fiscal year.

Insider Buying and Selling

In other Alexandria Real Estate Equities news, Chairman Joel Marcus bought 5,000 shares of the company's stock in a transaction on Friday, September 11th. The shares were bought at an average price of $49.68 per share, for a total transaction of $248,400.00. Following the transaction, the chairman owned 597,724 shares of the company's stock, valued at approximately $29,694,928.32. This trade represents a 0.84% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Kristina Fukuzaki-Carlson sold 16,810 shares of the business's stock in a transaction that occurred on Friday, September 11th. The stock was sold at an average price of $50.51, for a total value of $849,073.10. Following the transaction, the executive vice president owned 39,152 shares in the company, valued at $1,977,567.52. The trade was a 30.04% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 1.35% of the stock is currently owned by corporate insiders.

Institutional Trading of Alexandria Real Estate Equities

A number of institutional investors have recently modified their holdings of ARE. BlackRock Inc. acquired a new stake in shares of Alexandria Real Estate Equities during the second quarter valued at $1,146,423,000. Bank of New York Mellon Corp acquired a new position in Alexandria Real Estate Equities in the second quarter valued at $79,253,000. Legal & General Group Plc purchased a new position in Alexandria Real Estate Equities during the second quarter worth about $76,647,000. Hsbc Holdings PLC purchased a new position in Alexandria Real Estate Equities during the second quarter worth about $64,485,000. Finally, Bank of America Corp DE acquired a new stake in Alexandria Real Estate Equities in the 2nd quarter worth about $61,516,000. 96.54% of the stock is currently owned by hedge funds and other institutional investors.

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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