Wells Fargo & Company Issues Positive Forecast for Digital Realty Trust (NYSE:DLR) Stock Price

Key Points

• Wells Fargo raised Digital Realty Trust’s price target to $225 from $220 and maintained an “overweight” rating, implying about 26% upside from the reported share price. Analysts overall assign the stock a “Moderate Buy” consensus rating with an average target of $221.10.
• Digital Realty’s revenue rose 20.6% year over year to $1.90 billion, exceeding estimates, while reported EPS of $0.48 missed consensus by $0.04. Management also raised its 2026 core FFO outlook to $8.30–$8.35 per share, supported by strong data-center demand.
• The stock fell 2.4% to $178.57 amid its elevated valuation and the EPS miss, although institutional investors own 99.71% of shares and several analysts recently increased their price targets.

Digital Realty Trust (NYSE:DLR - Get Free Report) had its target price upped by research analysts at Wells Fargo & Company from $220.00 to $225.00 in a research report issued on Friday, Benzinga reports. The firm currently has an "overweight" rating on the real estate investment trust's stock. Wells Fargo & Company's price objective would indicate a potential upside of 26.00% from the stock's current price.

A number of other equities research analysts also recently commented on DLR. JPMorgan Chase & Co. lifted their target price on shares of Digital Realty Trust from $230.00 to $235.00 and gave the stock an "overweight" rating in a research report on Friday, July 24th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $229.00 price target on shares of Digital Realty Trust in a research note on Monday, July 27th. TD Cowen raised Digital Realty Trust from a "hold" rating to a "buy" rating and lifted their price objective for the stock from $192.00 to $222.00 in a report on Friday, July 24th. Cantor Fitzgerald upped their price target on shares of Digital Realty Trust from $221.00 to $223.00 and gave the company an "overweight" rating in a research report on Friday. Finally, Canadian Imperial Bank of Commerce initiated coverage on shares of Digital Realty Trust in a research note on Tuesday, October 20th. They set an "outperform" rating and a $213.00 price target on the stock. Two investment analysts have rated the stock with a Strong Buy rating, twenty-five have given a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $221.10.

Digital Realty Trust Stock Down 2.4%

Digital Realty Trust stock traded down $4.33 during mid-day trading on Friday, reaching $178.57. The stock had a trading volume of 2,141,043 shares, compared to its average volume of 2,316,828. Digital Realty Trust has a one year low of $146.23 and a one year high of $208.14. The company has a 50-day moving average price of $181.73 and a two-hundred day moving average price of $182.80. The company has a market capitalization of $66.25 billion, a price-to-earnings ratio of 86.57, a PEG ratio of 3.47 and a beta of 0.99. The company has a debt-to-equity ratio of 0.68, a current ratio of 1.06 and a quick ratio of 1.06.

Digital Realty Trust (NYSE:DLR - Get Free Report) last issued its earnings results on Thursday, October 29th. The real estate investment trust reported $0.48 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.52 by ($0.04). Digital Realty Trust had a return on equity of 3.34% and a net margin of 11.80%. The firm had revenue of $1.90 billion during the quarter, compared to analysts' expectations of $1.75 billion. During the same period last year, the firm posted $1.89 earnings per share. The firm's quarterly revenue was up 20.6% on a year-over-year basis. On average, analysts expect that Digital Realty Trust will post 8.33 EPS for the current fiscal year.

Insider Buying and Selling

In other Digital Realty Trust news, Director Mark Patterson sold 200 shares of the business's stock in a transaction that occurred 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 directly owned 6,322 shares of the company's stock, valued at $1,226,215.12. The trade was a 3.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Corporate insiders own 0.15% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Montecito Bank & Trust raised its holdings in Digital Realty Trust by 413.2% in the third quarter. Montecito Bank & Trust now owns 22,915 shares of the real estate investment trust's stock worth $4,022,000 after purchasing an additional 18,450 shares in the last quarter. NewEdge Advisors LLC grew its stake in Digital Realty Trust by 88.0% during the 2nd quarter. NewEdge Advisors LLC now owns 43,832 shares of the real estate investment trust's stock worth $7,871,000 after buying an additional 20,513 shares during the last quarter. Benjamin Edwards Inc. increased its holdings in shares of Digital Realty Trust by 40.6% during the second quarter. Benjamin Edwards Inc. now owns 88,953 shares of the real estate investment trust's stock valued at $15,978,000 after acquiring an additional 25,667 shares in the last quarter. Beacon Pointe Advisors LLC purchased a new position in shares of Digital Realty Trust in the 2nd quarter valued at approximately $3,286,000. Finally, Galaxy Digital Capital Management GP LLC acquired a new stake in Digital Realty Trust in the 2nd quarter worth approximately $2,837,000. 99.71% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Digital Realty Trust

Here are the key news stories impacting Digital Realty Trust this week:

• Positive Sentiment: Digital Realty reported third-quarter core FFO of $2.10 per share, beating consensus by $0.10, while revenue rose 20.6% year over year to $1.9 billion, $140 million above estimates. Record bookings, higher occupancy and stronger rental rates supported double-digit core FFO growth. DLR Q3 FFO and Revenues Beat Estimates
• Positive Sentiment: Management raised its 2026 core FFO outlook to $8.30-$8.35 per share, reflecting continued demand for data-center capacity and improved leasing fundamentals. The midpoint is broadly in line with the FactSet estimate of $8.34. Digital Realty Q3 Earnings and Outlook
• Positive Sentiment: Several analysts increased their price targets following the results. Cantor Fitzgerald raised its target to $223 and maintained an “overweight” rating, while Citigroup lifted its target to $234 and Wells Fargo raised its target to $225. Cantor Fitzgerald Raises Digital Realty Price Target
• Neutral Sentiment: The earnings call emphasized sustained cloud and artificial-intelligence-related data-center demand, but investors may want additional detail on bookings conversion, capital requirements and development returns. Digital Realty Q3 Earnings Call Transcript
• Negative Sentiment: Reported EPS of $0.48 missed the $0.52 consensus estimate. The headline miss, combined with DLR’s elevated valuation, may be prompting profit-taking despite the stronger FFO and revenue performance. Unusually heavy put-option buying also signals increased near-term hedging or bearish positioning. Digital Realty Earnings Report

Digital Realty Trust Company Profile

Digital Realty Trust, Inc is a real estate investment trust that owns, operates and develops data center facilities for businesses, cloud service providers, information technology companies and telecommunications organizations. The company provides the physical infrastructure needed to support data storage, networking, cloud computing and other digital operations.

Its services include data center colocation, interconnection and private connectivity solutions. Digital Realty also offers access to cloud and network providers through its PlatformDIGITAL platform, which is designed to help customers deploy, connect and manage their digital infrastructure across multiple locations.

Founded in 2001, Digital Realty serves customers through a global portfolio of data centers and related facilities across North America, Europe, Asia-Pacific and Latin America.

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