Daiwa Securities Group Inc. Reduces Stock Position in Agree Realty Corporation $ADC

Key Points

• Daiwa Securities Group Inc. cut its stake in Agree Realty by 4.2% in the fourth quarter, selling 99,405 shares and ending with 2.26 million shares worth about $163.0 million.
• Agree Realty reported better-than-expected quarterly results, posting EPS of $0.50 versus the $0.47 consensus and revenue of $211.49 million, up 18.7% year over year.
• The company also announced a quarterly dividend of $0.267 per share, while analysts currently view the stock as a Moderate Buy with a consensus price target of $83.80.

Daiwa Securities Group Inc. lowered its stake in shares of Agree Realty Corporation (NYSE:ADC - Free Report) by 4.2% during the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 2,262,991 shares of the real estate investment trust's stock after selling 99,405 shares during the period. Daiwa Securities Group Inc. owned 1.97% of Agree Realty worth $163,003,000 at the end of the most recent reporting period.

Several other institutional investors have also recently made changes to their positions in ADC. Principal Financial Group Inc. increased its holdings in shares of Agree Realty by 80.8% in the fourth quarter. Principal Financial Group Inc. now owns 4,293,556 shares of the real estate investment trust's stock worth $309,266,000 after purchasing an additional 1,918,427 shares during the period. Norges Bank bought a new position in shares of Agree Realty in the fourth quarter worth $116,114,000. JPMorgan Chase & Co. increased its stake in Agree Realty by 65.6% in the third quarter. JPMorgan Chase & Co. now owns 2,016,722 shares of the real estate investment trust's stock valued at $143,268,000 after acquiring an additional 799,185 shares during the last quarter. Duff & Phelps Investment Management Co. increased its stake in Agree Realty by 311.0% in the third quarter. Duff & Phelps Investment Management Co. now owns 838,570 shares of the real estate investment trust's stock valued at $59,572,000 after acquiring an additional 634,520 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in Agree Realty by 532.1% in the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 714,772 shares of the real estate investment trust's stock valued at $50,777,000 after acquiring an additional 601,689 shares during the last quarter. Hedge funds and other institutional investors own 97.83% of the company's stock.

Agree Realty Stock Up 0.2%

Shares of NYSE:ADC opened at $72.16 on Friday. The stock's 50-day moving average price is $75.99 and its 200-day moving average price is $75.25. Agree Realty Corporation has a 12-month low of $69.56 and a 12-month high of $82.08. The stock has a market capitalization of $8.67 billion, a P/E ratio of 39.00, a price-to-earnings-growth ratio of 2.42 and a beta of 0.48. The company has a current ratio of 0.83, a quick ratio of 0.83 and a debt-to-equity ratio of 0.61.

Agree Realty (NYSE:ADC - Get Free Report) last announced its quarterly earnings data on Tuesday, April 21st. The real estate investment trust reported $0.50 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.47 by $0.03. Agree Realty had a return on equity of 3.95% and a net margin of 29.25%.The firm had revenue of $211.49 million for the quarter, compared to analysts' expectations of $195.73 million. During the same period last year, the firm earned $0.42 earnings per share. The company's revenue for the quarter was up 18.7% compared to the same quarter last year. Agree Realty has set its FY 2026 guidance at 4.540-4.580 EPS. On average, equities analysts anticipate that Agree Realty Corporation will post 4.44 earnings per share for the current year.

Agree Realty Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 12th. Stockholders of record on Friday, May 29th will be paid a dividend of $0.267 per share. This represents a $1.07 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend is Friday, May 29th. Agree Realty's dividend payout ratio (DPR) is 172.97%.

Analysts Set New Price Targets

ADC has been the topic of a number of research analyst reports. Raymond James Financial increased their target price on Agree Realty from $84.00 to $90.00 and gave the company a "strong-buy" rating in a research note on Tuesday, March 17th. Robert W. Baird increased their target price on Agree Realty from $80.00 to $82.00 and gave the company an "outperform" rating in a research note on Wednesday, April 22nd. Wall Street Zen cut Agree Realty from a "hold" rating to a "sell" rating in a research note on Saturday, April 18th. Truist Financial increased their target price on Agree Realty from $79.00 to $82.00 and gave the company a "buy" rating in a research note on Monday, March 23rd. Finally, Weiss Ratings raised Agree Realty from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, April 6th. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and six have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $83.80.

Insider Transactions at Agree Realty

In related news, Director Greg Lehmkuhl acquired 750 shares of Agree Realty stock in a transaction dated Thursday, May 14th. The shares were purchased at an average cost of $75.09 per share, with a total value of $56,317.50. Following the completion of the purchase, the director owned 34,465 shares of the company's stock, valued at $2,587,976.85. This represents a 2.22% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Joey Agree bought 13,295 shares of the company's stock in a transaction dated Thursday, May 14th. The shares were purchased at an average price of $75.41 per share, with a total value of $1,002,575.95. Following the completion of the acquisition, the chief executive officer owned 675,105 shares of the company's stock, valued at $50,909,668.05. This trade represents a 2.01% increase in their position. The SEC filing for this purchase provides additional information. Insiders have bought 14,191 shares of company stock worth $1,069,944 over the last ninety days. Insiders own 1.80% of the company's stock.

About Agree Realty

Agree Realty Corporation NYSE: ADC is a publicly traded real estate investment trust headquartered in Chicago, Illinois. Founded in 1971, the company converted to a REIT structure in 2013 and focuses on acquiring, developing and managing a diversified portfolio of retail properties under long-term, triple-net (NNN) leases. Its tenant roster spans national and regional retailers in sectors such as grocery, home improvement, convenience and specialty retail.

Agree Realty's primary business activities include sourcing and underwriting new property acquisitions, originating build-to-suit projects and executing value-add redevelopment programs.

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