Alexandria Real Estate Equities, Inc. (NYSE:ARE) Stock Has Average Price Target of $49.36 According to Brokerages

Key Points

• Analysts remain cautious: Alexandria Real Estate Equities has an average “Reduce” rating from 16 brokerages, with an average 12-month price target of $49.36.
• Recent results were mixed: The REIT reported a quarterly loss of $3.74 per share, significantly missing estimates, while revenue of $671.18 million exceeded expectations and declined 10.7% year over year.
• Shares offer a high dividend yield but face pressure: ARE recently traded near $40.12 and pays an annualized $2.88 dividend, yielding about 7.2%; institutional investors own 96.54% of the stock, while two executives recently reduced their holdings through sales.

Shares of Alexandria Real Estate Equities, Inc. (NYSE:ARE - Get Free Report) have received an average rating of "Reduce" from the sixteen brokerages that are covering the company, MarketBeat Ratings reports. Four equities research analysts have rated the stock with a sell recommendation, ten have issued a hold recommendation and two have issued a buy recommendation on the company. The average 1 year price objective among brokerages that have updated their coverage on the stock in the last year is $49.36.

A number of brokerages recently commented on ARE. BMO Capital Markets dropped their price target on shares of Alexandria Real Estate Equities from $52.00 to $48.00 and set a "market perform" rating on the stock in a research note on Monday, September 28th. Zacks Research raised Alexandria Real Estate Equities from a "strong sell" rating to a "hold" rating in a report on Wednesday, August 19th. Citizens Jmp reaffirmed a "market perform" rating on shares of Alexandria Real Estate Equities in a report on Monday, August 17th. Robert W. Baird lifted their price target on Alexandria Real Estate Equities from $46.00 to $52.00 and gave the company a "neutral" rating in a research report on Monday, August 24th. Finally, Royal Bank Of Canada set a $41.00 price objective on Alexandria Real Estate Equities in a report on Monday, October 12th.

Insider Activity

In related news, EVP Kristina Fukuzaki-Carlson sold 16,810 shares of the company's stock in a transaction that occurred on Friday, September 11th. The shares were sold at an average price of $50.51, for a total transaction of $849,073.10. Following the sale, the executive vice president owned 39,152 shares of the company's stock, valued at approximately $1,977,567.52. This represents a 30.04% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, 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 transaction of $509,300.00. Following the completion of the sale, the chief accounting officer owned 102,516 shares in the company, valued at $5,221,139.88. This represents a 8.89% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 1.35% of the company's stock.

Institutional Inflows and Outflows

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

Alexandria Real Estate Equities Stock Performance

Shares of ARE opened at $40.12 on Friday. The firm has a market cap of $6.99 billion, a PE ratio of -4.76 and a beta of 1.16. The stock's fifty day moving average price is $48.10 and its two-hundred day moving average price is $49.70. The company has a debt-to-equity ratio of 0.65, a current ratio of 0.14 and a quick ratio of 0.19. Alexandria Real Estate Equities has a 1 year low of $38.34 and a 1 year high of $59.76.

Alexandria Real Estate Equities (NYSE:ARE - Get Free Report) last issued its quarterly earnings results on Monday, October 26th. The real estate investment trust reported ($3.74) EPS for the quarter, missing analysts' consensus estimates of ($0.03) by ($3.71). The firm had revenue of $671.18 million for the quarter, compared to analysts' expectations of $646.26 million. Alexandria Real Estate Equities had a negative net margin of 51.81% and a negative return on equity of 7.52%. The firm's quarterly revenue was down 10.7% on a year-over-year basis. During the same period in the prior year, the company earned $2.22 EPS. On average, equities research analysts forecast that Alexandria Real Estate Equities will post 6.39 EPS for the current year.

Alexandria Real Estate Equities Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th were given a dividend of $0.72 per share. The ex-dividend date was Wednesday, September 30th. This represents a $2.88 annualized dividend and a dividend yield of 7.2%. Alexandria Real Estate Equities's dividend payout ratio is currently -34.20%.

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. 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.