Alexandria Real Estate Equities, Inc. (NYSE:ARE) Receives Consensus Recommendation of "Reduce" from Analysts

Key Points

• Analysts have a “Reduce” consensus on Alexandria Real Estate Equities, with three sell, eleven hold, and two buy ratings. The average 12-month price target is $52.85, modestly above the reported $49.64 share price.
• The REIT reported a quarterly loss of $0.43 per share, missing the $0.09 consensus estimate, while revenue fell 13% year over year to $662.78 million. Shares have traded between $39.41 and $88.24 over the past year.
• Alexandria declared a quarterly dividend of $0.72 per share, or $2.88 annually, representing an approximately 5.8% yield; the dividend is payable October 15 to shareholders of record as of September 30.

Alexandria Real Estate Equities, Inc. (NYSE:ARE - Get Free Report) has been assigned a consensus recommendation of "Reduce" from the sixteen research firms that are presently covering the firm, Marketbeat reports. Three research analysts have rated the stock with a sell recommendation, eleven have issued a hold recommendation and two have given a buy recommendation to the company. The average 12-month price objective among brokers that have covered the stock in the last year is $52.8462.

A number of research firms have recently issued reports on ARE. Mizuho reduced their price target on shares of Alexandria Real Estate Equities from $70.00 to $60.00 and set an "outperform" rating for the company in a research report on Monday, July 6th. Cantor Fitzgerald upped their price objective on shares of Alexandria Real Estate Equities from $43.00 to $52.00 and gave the company a "neutral" rating in a research note on Wednesday, August 5th. The Goldman Sachs Group reiterated a "neutral" rating and issued a $52.00 target price on shares of Alexandria Real Estate Equities in a research report on Tuesday, May 19th. Evercore reissued an "outperform" rating and set a $57.00 target price on shares of Alexandria Real Estate Equities in a research note on Monday, August 17th. Finally, Citizens Jmp restated a "market perform" rating on shares of Alexandria Real Estate Equities in a report on Monday, August 17th.

Alexandria Real Estate Equities Stock Performance

Shares of Alexandria Real Estate Equities stock opened at $49.64 on Friday. Alexandria Real Estate Equities has a 12 month low of $39.41 and a 12 month high of $88.24. The company has a quick ratio of 0.19, a current ratio of 0.19 and a debt-to-equity ratio of 0.67. The stock has a market cap of $8.65 billion, a PE ratio of -8.19 and a beta of 1.15. The business has a fifty day simple moving average of $50.51 and a 200-day simple moving average of $49.38.

Alexandria Real Estate Equities (NYSE:ARE - Get Free Report) last announced its quarterly earnings data on Monday, August 3rd. The real estate investment trust reported ($0.43) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.09 by ($0.52). Alexandria Real Estate Equities had a negative return on equity of 5.21% and a negative net margin of 36.08%.The business had revenue of $662.78 million during the quarter, compared to analysts' expectations of $464.86 million. During the same period in the prior year, the company posted $2.33 earnings per share. The firm's revenue was down 13.0% on a year-over-year basis. Alexandria Real Estate Equities has set its FY 2026 guidance at 6.350-6.450 EPS. On average, sell-side analysts anticipate that Alexandria Real Estate Equities will post 6.39 EPS for the current fiscal year.

Alexandria Real Estate Equities Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Wednesday, September 30th will be given a dividend of $0.72 per share. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $2.88 dividend on an annualized basis and a yield of 5.8%. Alexandria Real Estate Equities's dividend payout ratio (DPR) is presently -47.52%.

Insider Transactions at Alexandria Real Estate Equities

In related news, CAO Andres Gavinet sold 10,000 shares of the stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $50.93, for a total value of $509,300.00. Following the transaction, the chief accounting officer owned 102,516 shares in the company, valued at approximately $5,221,139.88. This represents a 8.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Chairman Joel Marcus acquired 5,000 shares of the business's stock in a transaction that occurred on Monday, August 17th. The shares were acquired at an average cost of $46.28 per share, for a total transaction of $231,400.00. Following the transaction, the chairman owned 592,724 shares of the company's stock, valued at approximately $27,431,266.72. This represents a 0.85% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 1.35% of the company's stock.

Institutional Trading of Alexandria Real Estate Equities

Several large investors have recently added to or reduced their stakes in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Alexandria Real Estate Equities by 0.9% in the 2nd quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 23,443 shares of the real estate investment trust's stock valued at $1,711,000 after purchasing an additional 198 shares during the period. New Mexico Educational Retirement Board increased its position in shares of Alexandria Real Estate Equities by 2.9% during the 4th quarter. New Mexico Educational Retirement Board now owns 7,200 shares of the real estate investment trust's stock valued at $352,000 after purchasing an additional 200 shares during the last quarter. CIBC Private Wealth Group LLC raised its stake in shares of Alexandria Real Estate Equities by 109.6% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 436 shares of the real estate investment trust's stock worth $36,000 after purchasing an additional 228 shares during the period. Quarry LP boosted its holdings in shares of Alexandria Real Estate Equities by 33.9% in the 4th quarter. Quarry LP now owns 991 shares of the real estate investment trust's stock worth $48,000 after buying an additional 251 shares during the last quarter. Finally, OMERS ADMINISTRATION Corp boosted its holdings in shares of Alexandria Real Estate Equities by 4.3% in the 1st quarter. OMERS ADMINISTRATION Corp now owns 6,149 shares of the real estate investment trust's stock worth $285,000 after buying an additional 252 shares during the last quarter. 96.54% of the stock is owned by institutional investors.

Alexandria Real Estate Equities Company Profile

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. The company provides specialized laboratory, research and office space designed to support organizations working in biotechnology, pharmaceuticals, medical devices, diagnostics, agriculture and related technology fields.

Founded in 1994, Alexandria focuses on properties located in established innovation clusters, where its campuses bring together research institutions, universities, hospitals, government agencies, start-ups and established companies.

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