AvalonBay Communities (NYSE:AVB) Announces Quarterly Earnings Results, Beats Estimates By $1.62 EPS

Key Points

• AvalonBay Communities beat quarterly earnings estimates, reporting $2.86 EPS versus the $1.24 consensus estimate, and posted a net margin of 37.21% with return on equity of 9.56%.
• The stock edged lower after the report, falling 0.2% to $190.27 on lighter-than-average volume, while remaining near its 52-week range of $160.10 to $204.68.
• AvalonBay maintained an active dividend profile, paying a quarterly dividend of $1.78, or $7.12 annualized, which implies a 3.7% yield; however, its dividend payout ratio is currently above 100% at 103.19%.

AvalonBay Communities (NYSE:AVB - Get Free Report) issued its quarterly earnings results on Wednesday. The real estate investment trust reported $2.86 EPS for the quarter, topping the consensus estimate of $1.24 by $1.62, Zacks reports. AvalonBay Communities had a net margin of 37.21% and a return on equity of 9.56%.

AvalonBay Communities Trading Down 0.2%

NYSE AVB traded down $0.38 on Wednesday, hitting $190.27. 621,295 shares of the stock were exchanged, compared to its average volume of 1,097,177. AvalonBay Communities has a 52-week low of $160.10 and a 52-week high of $204.68. The company has a debt-to-equity ratio of 0.80, a current ratio of 0.62 and a quick ratio of 0.62. The company has a market capitalization of $27.03 billion, a price-to-earnings ratio of 27.58, a P/E/G ratio of 3.34 and a beta of 0.77. The company's 50-day moving average price is $187.09 and its two-hundred day moving average price is $179.23.

AvalonBay Communities Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th were paid a $1.78 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $7.12 dividend on an annualized basis and a yield of 3.7%. AvalonBay Communities's dividend payout ratio (DPR) is currently 103.19%.

Analysts Set New Price Targets

A number of analysts recently commented on the stock. Cantor Fitzgerald boosted their target price on shares of AvalonBay Communities from $186.00 to $190.00 and gave the stock a "neutral" rating in a report on Monday, May 4th. Jefferies Financial Group upgraded shares of AvalonBay Communities to a "hold" rating in a research report on Friday, June 26th. Truist Financial increased their price objective on AvalonBay Communities from $201.00 to $202.00 and gave the company a "buy" rating in a research report on Tuesday, June 16th. Wells Fargo & Company reduced their price objective on AvalonBay Communities from $193.00 to $191.00 and set an "overweight" rating for the company in a research note on Thursday, April 23rd. Finally, Weiss Ratings restated a "hold (c)" rating on shares of AvalonBay Communities in a report on Monday, July 6th. Three investment analysts have rated the stock with a Buy rating and fifteen have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $196.80.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Compound Planning Inc. bought a new position in AvalonBay Communities during the fourth quarter valued at approximately $238,000. Invesco Ltd. boosted its holdings in AvalonBay Communities by 1.2% in the fourth quarter. Invesco Ltd. now owns 2,615,640 shares of the real estate investment trust's stock worth $474,242,000 after purchasing an additional 29,834 shares in the last quarter. Rare Wolf Capital LLC acquired a new position in AvalonBay Communities during the fourth quarter worth $202,000. Corient Private Wealth LLC increased its position in AvalonBay Communities by 1,181.0% during the fourth quarter. Corient Private Wealth LLC now owns 675,070 shares of the real estate investment trust's stock worth $122,397,000 after buying an additional 622,370 shares during the last quarter. Finally, Beacon Pointe Advisors LLC bought a new position in AvalonBay Communities during the fourth quarter valued at about $233,000. 92.61% of the stock is owned by hedge funds and other institutional investors.

AvalonBay Communities Company Profile

AvalonBay Communities, Inc NYSE: AVB is a publicly traded real estate investment trust (REIT) that owns, develops, redevelops and manages multifamily residential properties. The company focuses on professionally managed apartment communities, offering a range of rental housing options and related resident services. As a REIT, AvalonBay's core activities center on the acquisition and development of apartment assets and the ongoing operations and leasing of those communities.

AvalonBay's operating activities include ground-up development, strategic redevelopment of existing properties, property and asset management, and on-site leasing and resident services.

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