BlackRock Inc. Makes New Investment in AvalonBay Communities, Inc. $AVB

Key Points

• BlackRock acquired a major stake in AvalonBay Communities during the second quarter, purchasing 17.85 million shares valued at approximately $3.37 billion. The investment represented about 12.5% of AVB, while institutional investors collectively owned 92.61% of the stock.
• Analysts remain broadly cautious, with three Buy ratings and 15 Hold ratings. The consensus rating is Hold, with an average price target of $196.87.
• AvalonBay reported quarterly EPS of $1.11, below the $1.23 consensus estimate, although revenue of $777.77 million exceeded expectations. The REIT maintained a quarterly dividend of $1.78, equal to a 3.9% annualized yield.

BlackRock Inc. purchased a new stake in AvalonBay Communities, Inc. (NYSE:AVB - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 17,852,876 shares of the real estate investment trust's stock, valued at approximately $3,368,659,000. BlackRock Inc. owned about 12.50% of AvalonBay Communities at the end of the most recent reporting period.

A number of other hedge funds have also modified their holdings of AVB. Pallas Capital Advisors LLC acquired a new stake in AvalonBay Communities during the 2nd quarter valued at $689,000. Deutsche Bank AG acquired a new position in shares of AvalonBay Communities in the second quarter worth $129,673,000. Trust Co. of Vermont acquired a new position in shares of AvalonBay Communities in the second quarter worth $41,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of AvalonBay Communities in the second quarter valued at $87,457,000. Finally, Beverly Hills Private Wealth LLC purchased a new stake in shares of AvalonBay Communities in the second quarter valued at $4,994,000. 92.61% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of analysts recently commented on AVB shares. UBS Group decreased their price objective on AvalonBay Communities from $191.00 to $189.00 and set a "neutral" rating on the stock in a research note on Thursday, May 14th. Barclays upped their target price on shares of AvalonBay Communities from $205.00 to $206.00 and gave the company an "equal weight" rating in a report on Monday. Scotiabank raised their price target on shares of AvalonBay Communities from $187.00 to $195.00 and gave the stock a "sector perform" rating in a research note on Thursday, July 9th. Royal Bank Of Canada lifted their price target on shares of AvalonBay Communities from $180.00 to $188.00 and gave the stock a "sector perform" rating in a report on Wednesday, April 29th. Finally, Wall Street Zen raised shares of AvalonBay Communities from a "sell" rating to a "hold" rating in a research report on Saturday, May 9th. Three analysts have rated the stock with a Buy rating and fifteen have given a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $196.87.

AvalonBay Communities Stock Performance

Shares of AVB stock opened at $184.06 on Wednesday. The firm has a market cap of $26.28 billion, a P/E ratio of 30.08, a PEG ratio of 2.98 and a beta of 0.76. AvalonBay Communities, Inc. has a 1-year low of $160.10 and a 1-year high of $198.63. The company has a debt-to-equity ratio of 0.74, a current ratio of 0.54 and a quick ratio of 0.54. The firm's 50-day simple moving average is $187.80 and its 200-day simple moving average is $180.28.

AvalonBay Communities (NYSE:AVB - Get Free Report) last released its earnings results on Thursday, July 23rd. The real estate investment trust reported $1.11 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.23 by ($0.12). AvalonBay Communities had a net margin of 33.33% and a return on equity of 8.58%. The company had revenue of $777.77 million during the quarter, compared to analysts' expectations of $772.37 million. During the same quarter in the previous year, the firm posted $2.82 earnings per share. As a group, equities analysts forecast that AvalonBay Communities, Inc. will post 11.33 EPS for the current year.

AvalonBay Communities Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th were issued a $1.78 dividend. This represents a $7.12 dividend on an annualized basis and a dividend yield of 3.9%. The ex-dividend date was Tuesday, June 30th. AvalonBay Communities's dividend payout ratio (DPR) is 116.34%.

AvalonBay Communities Profile

AvalonBay Communities, Inc NYSE: AVB is a publicly traded real estate investment trust (REIT) that owns, develops, redevelops and manages multifamily residential properties. The company focuses on professionally managed apartment communities, offering a range of rental housing options and related resident services. As a REIT, AvalonBay's core activities center on the acquisition and development of apartment assets and the ongoing operations and leasing of those communities.

AvalonBay's operating activities include ground-up development, strategic redevelopment of existing properties, property and asset management, and on-site leasing and resident services.

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