Alexandria Real Estate Equities, Inc. $ARE Stock: Alps Advisors Inc. Raises Position

Key Points

• Alps Advisors increased its Alexandria Real Estate Equities stake by 2,016.5% in the third quarter, to 100,406 shares valued at approximately $4.8 million.
• Analyst sentiment is cautious: the stock has an average “Reduce” rating and a $49.79 average price target; shares opened at $44.77.
• Alexandria reported quarterly EPS of -$3.74, far below the -$0.03 consensus, while revenue of $671.2 million exceeded estimates but fell 10.7% year over year. Its annualized dividend yield was 6.4%.

Alps Advisors Inc. lifted its stake in shares of Alexandria Real Estate Equities, Inc. (NYSE:ARE - Free Report) by 2,016.5% during the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 100,406 shares of the real estate investment trust's stock after acquiring an additional 95,662 shares during the period. Alps Advisors Inc. owned 0.06% of Alexandria Real Estate Equities worth $4,765,000 as of its most recent SEC filing.

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

Insiders Place Their Bets

In other news, Chairman Joel Marcus acquired 5,000 shares of the company's stock in a transaction dated Friday, September 11th. The shares were bought at an average price of $49.68 per share, for a total transaction of $248,400.00. Following the completion of the purchase, the chairman directly owned 597,724 shares of the company's stock, valued at approximately $29,694,928.32. This trade represents a 0.84% increase in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, EVP Kristina Fukuzaki-Carlson sold 16,810 shares of the business's stock in a transaction on Friday, September 11th. The stock was sold at an average price of $50.51, for a total transaction of $849,073.10. Following the transaction, the executive vice president directly owned 39,152 shares in the company, valued at approximately $1,977,567.52. The trade was a 30.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.35% of the stock is owned by company insiders.

Analysts Set New Price Targets

Several analysts have commented on the stock. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Alexandria Real Estate Equities in a research note on Thursday, October 15th. BMO Capital Markets reduced their price target on 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. Robert W. Baird raised their price objective on Alexandria Real Estate Equities from $46.00 to $52.00 and gave the stock a "neutral" rating in a report on Monday, August 24th. Citigroup lowered their price objective on Alexandria Real Estate Equities from $50.00 to $42.00 and set a "neutral" rating for the company in a research report on Friday, October 30th. Finally, Cantor Fitzgerald dropped their target price on Alexandria Real Estate Equities from $52.00 to $42.00 and set a "neutral" rating for the company in a research note on Wednesday, October 28th. Two equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Reduce" and an average target price of $49.79.

Alexandria Real Estate Equities Stock Performance

Shares of ARE stock opened at $44.77 on Monday. Alexandria Real Estate Equities, Inc. has a one year low of $38.34 and a one year high of $59.76. The company has a debt-to-equity ratio of 0.65, a quick ratio of 0.14 and a current ratio of 0.14. The company has a 50 day moving average price of $47.20 and a 200 day moving average price of $49.38. The firm has a market capitalization of $7.80 billion, a price-to-earnings ratio of -5.32 and a beta of 1.17.

Alexandria Real Estate Equities (NYSE:ARE - Get Free Report) last posted its quarterly earnings results on Monday, October 26th. The real estate investment trust reported ($3.74) earnings per share for the quarter, missing analysts' consensus estimates of ($0.03) by ($3.71). The company had revenue of $671.18 million for the quarter, compared to analysts' expectations of $646.26 million. Alexandria Real Estate Equities had a negative return on equity of 7.52% and a negative net margin of 51.81%. The business's revenue for the quarter was down 10.7% on a year-over-year basis. During the same period in the prior year, the business earned $2.22 EPS. Sell-side analysts anticipate that Alexandria Real Estate Equities, Inc. 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. Shareholders of record on Wednesday, September 30th were issued a $0.72 dividend. This represents a $2.88 dividend on an annualized basis and a yield of 6.4%. The ex-dividend date was Wednesday, September 30th. Alexandria Real Estate Equities's dividend payout ratio is currently -34.20%.

About Alexandria Real Estate Equities

Alexandria Real Estate Equities, Inc is a real estate investment trust specializing in life science, technology and other knowledge-based industries. Founded in 1994, the company develops, owns and operates collaborative campuses that bring together companies, researchers and institutions.

Its properties include laboratory, office and manufacturing space, as well as related facilities and amenities designed to support research and innovation. Alexandria also makes strategic investments in companies in the life science and technology sectors through its venture investment platform.

The company serves major U.S.

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