Adelante Capital Management LLC Acquires Shares of 487,419 Digital Realty Trust, Inc. $DLR

Key Points

• Adelante Capital Management acquired 487,419 shares of Digital Realty Trust worth approximately $87.5 million, making DLR about 5.8% of its portfolio and its fifth-largest holding.
• Analysts remain broadly positive, with Digital Realty holding a “Moderate Buy” consensus rating and an average price target of $219.45; recent target increases included RBC to $227 and Cantor Fitzgerald to $221.
• Digital Realty reported revenue growth of 28.9% year over year to $1.92 billion, although quarterly EPS of $1.21 missed estimates. The company also declared a $1.22 quarterly dividend, equal to a 2.5% annualized yield.

Adelante Capital Management LLC bought a new position in Digital Realty Trust, Inc. (NYSE:DLR - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 487,419 shares of the real estate investment trust's stock, valued at approximately $87,531,000. Digital Realty Trust comprises about 5.8% of Adelante Capital Management LLC's portfolio, making the stock its 5th largest position. Adelante Capital Management LLC owned 0.13% of Digital Realty Trust as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds have also modified their holdings of DLR. Cherry Creek Investment Advisors Inc. increased its stake in shares of Digital Realty Trust by 0.3% in the 1st quarter. Cherry Creek Investment Advisors Inc. now owns 18,745 shares of the real estate investment trust's stock valued at $3,378,000 after buying an additional 51 shares during the period. Columbia Bank lifted its stake in shares of Digital Realty Trust by 0.9% during the first quarter. Columbia Bank now owns 6,167 shares of the real estate investment trust's stock valued at $1,111,000 after acquiring an additional 53 shares during the period. GHP Investment Advisors Inc. boosted its holdings in Digital Realty Trust by 9.1% in the first quarter. GHP Investment Advisors Inc. now owns 657 shares of the real estate investment trust's stock valued at $118,000 after acquiring an additional 55 shares during the last quarter. South Plains Financial Inc. increased its position in Digital Realty Trust by 25.7% in the fourth quarter. South Plains Financial Inc. now owns 274 shares of the real estate investment trust's stock worth $42,000 after purchasing an additional 56 shares during the period. Finally, Denali Advisors LLC increased its position in Digital Realty Trust by 1.3% in the second quarter. Denali Advisors LLC now owns 4,359 shares of the real estate investment trust's stock worth $783,000 after purchasing an additional 56 shares during the period. 99.71% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on DLR. Royal Bank Of Canada raised their target price on shares of Digital Realty Trust from $207.00 to $227.00 and gave the company an "outperform" rating in a research note on Monday, July 27th. Weiss Ratings lowered shares of Digital Realty Trust from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, August 12th. KeyCorp reaffirmed a "sector weight" rating on shares of Digital Realty Trust in a research note on Friday, July 24th. Cantor Fitzgerald lifted their target price on shares of Digital Realty Trust from $211.00 to $221.00 and gave the stock an "overweight" rating in a report on Wednesday, July 29th. Finally, Guggenheim upgraded shares of Digital Realty Trust from a "neutral" rating to a "buy" rating and set a $200.00 target price for the company in a research report on Wednesday, July 15th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-five have given a Buy rating and six have issued a Hold rating to the company. According to MarketBeat.com, Digital Realty Trust has an average rating of "Moderate Buy" and an average price target of $219.45.

Digital Realty Trust Price Performance

Digital Realty Trust stock opened at $193.14 on Thursday. The company has a current ratio of 1.06, a quick ratio of 1.06 and a debt-to-equity ratio of 0.68. The firm has a market capitalization of $71.65 billion, a P/E ratio of 93.76, a PEG ratio of 5.45 and a beta of 1.03. The business has a 50-day moving average of $187.13 and a 200-day moving average of $186.10. Digital Realty Trust, Inc. has a 1 year low of $146.23 and a 1 year high of $208.14.

Digital Realty Trust (NYSE:DLR - Get Free Report) last announced its quarterly earnings results on Thursday, July 23rd. The real estate investment trust reported $1.21 earnings per share for the quarter, missing analysts' consensus estimates of $1.98 by ($0.77). Digital Realty Trust had a net margin of 11.80% and a return on equity of 3.34%. The firm had revenue of $1.92 billion during the quarter, compared to analyst estimates of $1.66 billion. During the same quarter in the prior year, the business earned $1.87 earnings per share. The business'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. On average, equities analysts anticipate that Digital Realty Trust, Inc. will post 8.4 EPS for the current year.

Digital Realty Trust Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be issued a dividend of $1.22 per share. The ex-dividend date is Tuesday, September 15th. This represents a $4.88 annualized dividend and a yield of 2.5%. Digital Realty Trust's payout ratio is currently 236.89%.

Digital Realty Trust 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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