Canada Pension Plan Investment Board Sells 324,064 Shares of AvalonBay Communities, Inc. $AVB

Key Points

• The Canada Pension Plan Investment Board reduced its stake in AvalonBay Communities by 16% during Q1, selling 324,064 shares and holding approximately 1.19% of the company worth $363.8 million.
• Analysts have adjusted their price targets for AvalonBay Communities, with UBS lowering its target from $238 to $216, and a consensus rating of "Hold" with a target price of $223.43.
• AvalonBay Communities reported Q2 earnings of $2.82 per share, surpassing estimates, and revenue of $689.9 million, which fell short of expectations of $759.08 million.

Canada Pension Plan Investment Board cut its stake in shares of AvalonBay Communities, Inc. (NYSE:AVB - Free Report) by 16.0% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 1,695,253 shares of the real estate investment trust's stock after selling 324,064 shares during the quarter. Canada Pension Plan Investment Board owned 1.19% of AvalonBay Communities worth $363,835,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of AVB. Achmea Investment Management B.V. boosted its position in shares of AvalonBay Communities by 33.5% during the 1st quarter. Achmea Investment Management B.V. now owns 23,068 shares of the real estate investment trust's stock worth $4,951,000 after purchasing an additional 5,791 shares in the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd raised its stake in AvalonBay Communities by 4.9% in the 1st quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 48,476 shares of the real estate investment trust's stock valued at $10,404,000 after purchasing an additional 2,243 shares during the last quarter. Vert Asset Management LLC raised its stake in AvalonBay Communities by 5.0% in the 1st quarter. Vert Asset Management LLC now owns 66,660 shares of the real estate investment trust's stock valued at $14,307,000 after purchasing an additional 3,199 shares during the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. grew its holdings in AvalonBay Communities by 9.1% in the 1st quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 344,505 shares of the real estate investment trust's stock valued at $73,938,000 after buying an additional 28,608 shares during the period. Finally, GF Fund Management CO. LTD. purchased a new stake in AvalonBay Communities in the 4th quarter valued at about $568,000. 92.61% of the stock is currently owned by hedge funds and other institutional investors.

AvalonBay Communities Stock Up 0.8%

Shares of NYSE AVB traded up $1.53 during mid-day trading on Wednesday, reaching $190.55. 291,807 shares of the company traded hands, compared to its average volume of 822,281. The stock has a market cap of $27.13 billion, a PE ratio of 23.43, a price-to-earnings-growth ratio of 2.82 and a beta of 0.87. The company's fifty day moving average is $196.17 and its two-hundred day moving average is $204.03. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.70 and a current ratio of 0.70. AvalonBay Communities, Inc. has a fifty-two week low of $180.40 and a fifty-two week high of $239.29.

AvalonBay Communities (NYSE:AVB - Get Free Report) last released its earnings results on Wednesday, July 30th. The real estate investment trust reported $2.82 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.80 by $0.02. The firm had revenue of $689.90 million for the quarter, compared to analyst estimates of $759.08 million. AvalonBay Communities had a return on equity of 9.70% and a net margin of 38.91%.During the same quarter last year, the firm posted $2.77 EPS. AvalonBay Communities has set its FY 2025 guidance at 11.190-11.590 EPS. Q3 2025 guidance at 2.750-2.850 EPS. On average, analysts expect that AvalonBay Communities, Inc. will post 11.48 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO Kevin P. O'shea sold 6,000 shares of the firm's stock in a transaction that occurred on Monday, June 16th. The stock was sold at an average price of $207.57, for a total transaction of $1,245,420.00. Following the completion of the transaction, the chief financial officer owned 22,782 shares in the company, valued at $4,728,859.74. This trade represents a 20.85% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Edward M. Schulman sold 5,945 shares of the firm's stock in a transaction that occurred on Friday, June 13th. The stock was sold at an average price of $205.67, for a total value of $1,222,708.15. Following the transaction, the executive vice president owned 17,617 shares of the company's stock, valued at $3,623,288.39. This trade represents a 25.23% decrease in their position. The disclosure for this sale can be found here. 0.48% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

A number of analysts have recently issued reports on the company. UBS Group decreased their target price on AvalonBay Communities from $238.00 to $216.00 and set a "neutral" rating for the company in a report on Tuesday, July 15th. Wells Fargo & Company decreased their price target on AvalonBay Communities from $244.00 to $213.00 and set an "overweight" rating for the company in a report on Wednesday, August 27th. Evercore ISI cut their target price on AvalonBay Communities from $216.00 to $212.00 and set an "in-line" rating on the stock in a research report on Tuesday, August 12th. Scotiabank dropped their price target on AvalonBay Communities from $236.00 to $226.00 and set a "sector perform" rating on the stock in a research report on Thursday, August 14th. Finally, Morgan Stanley upgraded AvalonBay Communities from an "equal weight" rating to an "overweight" rating and lowered their price objective for the stock from $228.00 to $225.00 in a research note on Wednesday, August 13th. Six research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $223.43.

About AvalonBay Communities

AvalonBay Communities, Inc is a real estate investment trust, which engages in the development, acquisition, ownership, and operation of multifamily communities. It operates through the following segments: Same Store, Other Stabilized, and Development or Redevelopment. The Same Store segment refers to the operating communities that were owned and had stabilized occupancy.