Digital Realty Trust (NYSE:DLR) Shares Gap Up on Analyst Upgrade

Key Points

• Digital Realty Trust shares jumped after TD Cowen upgraded the stock from hold to buy and raised its price target to $222, helping the shares gap up to $190.00 from a prior close of $179.34.
• The company also posted strong operating results, with Q2 funds from operations of $2.13 per share and revenue of $1.92 billion both beating expectations, while revenue rose 28.9% year over year.
• Management raised fiscal 2026 guidance for adjusted FFO to $8.15-$8.20 per share and increased revenue outlook, citing robust leasing demand from cloud and AI customers.

Digital Realty Trust, Inc. (NYSE:DLR - Get Free Report)'s stock price gapped up prior to trading on Friday after TD Cowen upgraded the stock from a hold rating to a buy rating. The stock had previously closed at $179.34, but opened at $190.00. TD Cowen now has a $222.00 price target on the stock. Digital Realty Trust shares last traded at $203.0860, with a volume of 2,076,475 shares.

A number of other research analysts also recently weighed in on the company. UBS Group raised their price objective on Digital Realty Trust from $225.00 to $227.00 and gave the company a "buy" rating in a research note on Friday, April 24th. Guggenheim upgraded Digital Realty Trust from a "neutral" rating to a "buy" rating and set a $200.00 price target on the stock in a report on Wednesday, July 15th. Deutsche Bank Aktiengesellschaft lifted their price target on shares of Digital Realty Trust from $196.00 to $220.00 and gave the company a "buy" rating in a research report on Monday, May 18th. Jefferies Financial Group upped their price objective on shares of Digital Realty Trust from $223.00 to $233.00 and gave the stock a "buy" rating in a report on Friday, April 24th. Finally, BNP Paribas Exane raised their target price on shares of Digital Realty Trust from $196.00 to $224.00 and gave the company an "outperform" rating in a research note on Friday, April 24th. One research analyst has rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, Digital Realty Trust currently has an average rating of "Moderate Buy" and a consensus price target of $217.21.

Trending Headlines about Digital Realty Trust

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

• Positive Sentiment: Digital Realty raised its fiscal 2026 adjusted FFO guidance to $8.15-$8.20 per share and increased revenue guidance, citing robust leasing demand from cloud and AI customers. Reuters: Digital Realty raises annual FFO forecast on robust data center demand
• Positive Sentiment: TD Cowen upgraded Digital Realty Trust from hold to buy and set a $222 price target, signaling confidence in further upside. The Fly: TD Cowen upgrade
• Positive Sentiment: Q2 funds from operations of $2.13 per share beat estimates, and revenue of $1.92 billion topped expectations, reinforcing that the core business is benefiting from strong demand. Zacks: DLR beats Q2 FFO and revenue estimates
• Neutral Sentiment: The company’s reported EPS of $1.21 missed consensus, so the quarter was not a clean beat across all metrics, which may temper some enthusiasm. MarketBeat earnings report

Institutional Investors Weigh In On Digital Realty Trust

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Sunbelt Securities Inc. boosted its holdings in Digital Realty Trust by 347.2% in the 3rd quarter. Sunbelt Securities Inc. now owns 161 shares of the real estate investment trust's stock valued at $28,000 after purchasing an additional 125 shares during the period. Bell Investment Advisors Inc raised its position in shares of Digital Realty Trust by 56.9% during the first quarter. Bell Investment Advisors Inc now owns 171 shares of the real estate investment trust's stock valued at $31,000 after buying an additional 62 shares during the last quarter. Harvest Fund Management Co. Ltd raised its position in shares of Digital Realty Trust by 970.6% during the third quarter. Harvest Fund Management Co. Ltd now owns 182 shares of the real estate investment trust's stock valued at $31,000 after buying an additional 165 shares during the last quarter. Caitong International Asset Management Co. Ltd bought a new stake in shares of Digital Realty Trust in the third quarter valued at about $34,000. Finally, MCF Advisors LLC bought a new stake in shares of Digital Realty Trust in the fourth quarter valued at about $35,000. Institutional investors and hedge funds own 99.71% of the company's stock.

Digital Realty Trust Trading Up 13.6%

The company has a quick ratio of 1.59, a current ratio of 1.59 and a debt-to-equity ratio of 0.78. The firm has a market capitalization of $71.59 billion, a price-to-earnings ratio of 53.72, a P/E/G ratio of 4.86 and a beta of 1.03. The business has a 50-day moving average of $184.35 and a two-hundred day moving average of $180.59.

Digital Realty Trust (NYSE:DLR - Get Free Report) last posted its quarterly earnings results on Thursday, July 23rd. The real estate investment trust reported $1.21 EPS for the quarter, missing the consensus estimate of $1.98 by ($0.77). Digital Realty Trust had a net margin of 21.73% and a return on equity of 6.05%. The firm had revenue of $1.92 billion during the quarter, compared to analyst estimates of $1.66 billion. During the same period last year, the company earned $1.87 EPS. The company's revenue was up 28.9% on a year-over-year basis. Digital Realty Trust has set its FY 2026 guidance at 8.150-8.200 EPS. Research analysts predict that Digital Realty Trust, Inc. will post 8.04 EPS for the current fiscal year.

Digital Realty Trust Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 15th were paid a $1.22 dividend. This represents a $4.88 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date was Monday, June 15th. Digital Realty Trust's dividend payout ratio is presently 128.76%.

Digital Realty Trust Company Profile

Digital Realty Trust, Inc NYSE: DLR is a real estate investment trust that owns, acquires and operates carrier-neutral data centers and provides related colocation and interconnection solutions. The company focuses on large-scale, mission-critical facilities that support the physical infrastructure needs of cloud providers, enterprises, network operators and content companies. Digital Realty's offerings are designed to enable secure, reliable and highly available IT infrastructure with an emphasis on power density, cooling, and physical security.

Digital Realty's product set spans wholesale data center space, turnkey build-to-suit facilities, and retail colocation suites, complemented by interconnection services that allow customers to establish private and public connections to networks, cloud on-ramps and other ecosystem partners.

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