Empire State Realty Trust (NYSE:ESRT) Shares Gap Down - Here's Why

Key Points

• Empire State Realty Trust shares fell sharply, opening at $5.22 versus a prior close of $5.80 and later trading near $5.12.
• Analyst sentiment remains negative: the stock has a consensus “Sell” rating and a $5.75 price target, with several firms recently lowering their targets.
• The REIT reported a quarterly loss of $0.15 per share on $165.17 million in revenue, while maintaining a $0.035 quarterly dividend, equivalent to a 2.8% yield.

Empire State Realty Trust, Inc. (NYSE:ESRT - Get Free Report)'s share price gapped down before the market opened on Thursday . The stock had previously closed at $5.80, but opened at $5.22. Empire State Realty Trust shares last traded at $5.1150, with a volume of 372,841 shares.

Wall Street Analysts Forecast Growth

ESRT has been the subject of a number of analyst reports. Evercore set a $5.50 price objective on shares of Empire State Realty Trust in a research report on Thursday. Citigroup dropped their target price on Empire State Realty Trust from $7.00 to $5.75 and set a "neutral" rating on the stock in a research report on Wednesday, April 15th. Weiss Ratings cut Empire State Realty Trust from a "sell (d+)" rating to a "sell (d)" rating in a research note on Monday, May 11th. Finally, Wells Fargo & Company reduced their price target on Empire State Realty Trust from $6.30 to $6.00 and set an "underweight" rating for the company in a report on Monday, June 1st. One investment analyst has rated the stock with a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Sell" and a consensus price target of $5.75.

Empire State Realty Trust Stock Performance

The company has a current ratio of 1.94, a quick ratio of 1.94 and a debt-to-equity ratio of 1.22. The stock's 50-day moving average price is $5.50 and its 200-day moving average price is $5.68. The company has a market capitalization of $854.39 million, a P/E ratio of 19.02 and a beta of 1.35.

Empire State Realty Trust (NYSE:ESRT - Get Free Report) last posted its earnings results on Wednesday, July 29th. The real estate investment trust reported ($0.15) EPS for the quarter. Empire State Realty Trust had a net margin of 5.09% and a return on equity of 2.19%. The company had revenue of $165.17 million for the quarter. Empire State Realty Trust has set its FY 2026 guidance at 0.750-0.790 EPS.

Empire State Realty Trust Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 15th were issued a dividend of $0.035 per share. The ex-dividend date of this dividend was Monday, June 15th. This represents a $0.14 annualized dividend and a dividend yield of 2.8%. Empire State Realty Trust's payout ratio is 53.85%.

Institutional Trading of Empire State Realty Trust

A number of large investors have recently modified their holdings of ESRT. M&T Bank Corp lifted its position in Empire State Realty Trust by 11.7% in the 2nd quarter. M&T Bank Corp now owns 12,961 shares of the real estate investment trust's stock valued at $105,000 after purchasing an additional 1,360 shares during the last quarter. The Manufacturers Life Insurance Company grew its position in Empire State Realty Trust by 2.0% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 70,992 shares of the real estate investment trust's stock worth $574,000 after purchasing an additional 1,418 shares during the last quarter. Amundi increased its stake in shares of Empire State Realty Trust by 2.0% in the first quarter. Amundi now owns 78,614 shares of the real estate investment trust's stock valued at $585,000 after purchasing an additional 1,562 shares during the period. Van ECK Associates Corp increased its stake in shares of Empire State Realty Trust by 4.4% in the third quarter. Van ECK Associates Corp now owns 40,169 shares of the real estate investment trust's stock valued at $308,000 after purchasing an additional 1,707 shares during the period. Finally, Cerity Partners LLC raised its holdings in shares of Empire State Realty Trust by 3.0% during the second quarter. Cerity Partners LLC now owns 64,449 shares of the real estate investment trust's stock valued at $521,000 after buying an additional 1,896 shares during the last quarter. Institutional investors and hedge funds own 67.10% of the company's stock.

About Empire State Realty Trust

Empire State Realty Trust, Inc is a publicly traded real estate investment trust (REIT) focused on the ownership, management and operation of office and retail properties. The company's portfolio features the iconic Empire State Building in Midtown Manhattan, alongside a diversified collection of commercial assets situated throughout Manhattan, Brooklyn and select markets in Upstate New York. By offering premium office space and street-level retail, Empire State Realty Trust positions itself as a landlord of choice for corporate tenants, retailers and experiential brands seeking high-profile addresses.

Established through a spin-off of assets in early 2013, Empire State Realty Trust consolidated a mix of landmark and Class A properties, creating scale in one of the world's most competitive real estate markets.

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