Equity Residential (NYSE:EQR) Announces Earnings Results

Key Points

• Equity Residential beat earnings expectations, reporting $1.02 in EPS for the quarter versus analysts’ estimate of $0.45. The REIT also posted a 30.63% net margin and an 8.57% return on equity.
• The stock was little changed after the report, trading down $0.09 to $68.20 during the session. EQR remains near its recent range, with a 52-week high of $71.50 and low of $57.57.
• Equity Residential continues to pay a sizable dividend, with a quarterly payout of $0.7025 per share and an annualized yield of 4.1%. However, its dividend payout ratio is elevated at 112.40%.

Equity Residential (NYSE:EQR - Get Free Report) released its quarterly earnings results on Wednesday. The real estate investment trust reported $1.02 earnings per share for the quarter, topping analysts' consensus estimates of $0.45 by $0.57, Zacks reports. Equity Residential had a return on equity of 8.57% and a net margin of 30.63%.

Equity Residential Stock Performance

Shares of EQR traded down $0.09 during mid-day trading on Wednesday, hitting $68.20. The stock had a trading volume of 2,667,375 shares, compared to its average volume of 2,784,403. The company has a market cap of $25.57 billion, a PE ratio of 27.28, a PEG ratio of 5.46 and a beta of 0.74. The company's fifty day simple moving average is $67.12 and its two-hundred day simple moving average is $63.83. The company has a quick ratio of 0.18, a current ratio of 0.18 and a debt-to-equity ratio of 0.77. Equity Residential has a fifty-two week low of $57.57 and a fifty-two week high of $71.50.

Equity Residential Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, July 10th. Shareholders of record on Monday, June 29th were issued a dividend of $0.7025 per share. This represents a $2.81 dividend on an annualized basis and a yield of 4.1%. The ex-dividend date of this dividend was Monday, June 29th. Equity Residential's dividend payout ratio (DPR) is currently 112.40%.

Institutional Investors Weigh In On Equity Residential

A number of institutional investors have recently modified their holdings of EQR. Fulcrum Asset Management LLP bought a new position in Equity Residential during the 3rd quarter worth $27,000. DV Equities LLC bought a new stake in shares of Equity Residential during the 4th quarter worth about $30,000. Zions Bancorporation National Association UT raised its holdings in Equity Residential by 375.2% during the fourth quarter. Zions Bancorporation National Association UT now owns 480 shares of the real estate investment trust's stock worth $30,000 after purchasing an additional 379 shares in the last quarter. Harvest Fund Management Co. Ltd bought a new stake in Equity Residential during the third quarter worth approximately $31,000. Finally, MUFG Securities EMEA plc acquired a new stake in Equity Residential in the second quarter worth approximately $68,000. Institutional investors own 92.68% of the company's stock.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on EQR shares. Wells Fargo & Company raised their target price on Equity Residential from $62.00 to $64.00 and gave the company an "equal weight" rating in a research note on Thursday, April 23rd. Nordea Equity Research upgraded Equity Residential to a "buy" rating in a research note on Wednesday, May 27th. Scotiabank increased their price target on Equity Residential from $67.00 to $70.00 and gave the company a "sector perform" rating in a report on Thursday, July 9th. Morgan Stanley upgraded Equity Residential from an "equal weight" rating to an "overweight" rating and raised their price objective for the company from $72.00 to $74.00 in a research note on Thursday, March 26th. Finally, Truist Financial lifted their price objective on Equity Residential from $70.00 to $72.00 and gave the stock a "buy" rating in a report on Tuesday, June 16th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and fourteen have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $71.40.

About Equity Residential

Equity Residential NYSE: EQR is a publicly traded real estate investment trust that acquires, develops, owns and operates rental apartment properties. Headquartered in Chicago, the company focuses on delivering professionally managed, market-rate apartment homes and related services to renters. Its operations cover a range of property types, including high-rise and mid-rise assets, with amenities and on-site management designed to support resident retention and occupancy.

The company's core activities include property acquisitions, development and redevelopment, leasing, and day-to-day property management.

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