Diamond Hill Capital Management Inc. Takes $8.45 Million Position in Alexandria Real Estate Equities, Inc. $ARE

Key Points

• Diamond Hill Capital Management initiated a new position in Alexandria Real Estate Equities, buying 172,549 shares valued at about $8.45 million in the fourth quarter.
• The REIT reported quarterly earnings of $1.73 per share, matching analyst estimates, but revenue of $671.0 million fell short of expectations and declined 11.5% from a year earlier.
• Alexandria Real Estate Equities pays a 6.0% dividend yield and has received mostly cautious analyst sentiment, with a consensus rating of “Hold” and an average price target of $51.31.

Diamond Hill Capital Management Inc. bought a new stake in Alexandria Real Estate Equities, Inc. (NYSE:ARE - Free Report) in the 4th quarter, according to its most recent 13F filing with the SEC. The firm bought 172,549 shares of the real estate investment trust's stock, valued at approximately $8,445,000. Diamond Hill Capital Management Inc. owned 0.10% of Alexandria Real Estate Equities at the end of the most recent reporting period.

Other hedge funds have also added to or reduced their stakes in the company. Avalon Trust Co acquired a new position in Alexandria Real Estate Equities during the 3rd quarter valued at about $29,000. Cornerstone Planning Group LLC boosted its stake in Alexandria Real Estate Equities by 5,916.7% during the 3rd quarter. Cornerstone Planning Group LLC now owns 361 shares of the real estate investment trust's stock valued at $30,000 after purchasing an additional 355 shares during the last quarter. CYBER HORNET ETFs LLC acquired a new position in Alexandria Real Estate Equities during the 2nd quarter valued at about $30,000. BOKF NA boosted its stake in Alexandria Real Estate Equities by 6,033.3% during the 3rd quarter. BOKF NA now owns 368 shares of the real estate investment trust's stock valued at $31,000 after purchasing an additional 362 shares during the last quarter. Finally, MUFG Securities EMEA plc acquired a new position in Alexandria Real Estate Equities during the 2nd quarter valued at about $33,000. Institutional investors and hedge funds own 96.54% of the company's stock.

Alexandria Real Estate Equities Price Performance

Shares of NYSE ARE opened at $48.36 on Friday. Alexandria Real Estate Equities, Inc. has a twelve month low of $39.41 and a twelve month high of $88.24. The stock's 50 day moving average price is $46.12 and its 200-day moving average price is $50.17. The company has a market capitalization of $8.43 billion, a PE ratio of -7.71, a PEG ratio of 5.79 and a beta of 1.12. The company has a quick ratio of 0.20, a current ratio of 0.20 and a debt-to-equity ratio of 0.65.

Alexandria Real Estate Equities (NYSE:ARE - Get Free Report) last announced its earnings results on Monday, April 27th. The real estate investment trust reported $1.73 earnings per share for the quarter, hitting analysts' consensus estimates of $1.73. Alexandria Real Estate Equities had a negative return on equity of 5.21% and a negative net margin of 36.03%.The firm had revenue of $671.02 million for the quarter, compared to the consensus estimate of $684.78 million. During the same quarter in the previous year, the business earned $2.30 EPS. The company's revenue was down 11.5% compared to the same quarter last year. Alexandria Real Estate Equities has set its FY 2026 guidance at 6.300-6.500 EPS. On average, equities analysts anticipate that Alexandria Real Estate Equities, Inc. will post 6.4 EPS for the current year.

Alexandria Real Estate Equities Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st were issued a $0.72 dividend. This represents a $2.88 dividend on an annualized basis and a dividend yield of 6.0%. The ex-dividend date of this dividend was Tuesday, March 31st. Alexandria Real Estate Equities's payout ratio is -45.93%.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the company. Royal Bank Of Canada cut their price target on Alexandria Real Estate Equities from $60.00 to $50.00 and set a "sector perform" rating for the company in a research note on Tuesday, May 5th. The Goldman Sachs Group reiterated a "neutral" rating and set a $52.00 price target on shares of Alexandria Real Estate Equities in a research note on Tuesday. Evercore set a $55.00 price target on Alexandria Real Estate Equities in a research note on Monday, May 4th. Citigroup restated an "outperform" rating on shares of Alexandria Real Estate Equities in a research note on Monday, May 4th. Finally, BMO Capital Markets restated a "market perform" rating and issued a $52.00 target price (down from $65.00) on shares of Alexandria Real Estate Equities in a research note on Wednesday, March 25th. Three research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Alexandria Real Estate Equities presently has an average rating of "Hold" and a consensus target price of $51.31.

Insider Buying and Selling

In related news, EVP Gregory Calvin Thomas purchased 3,500 shares of the stock in a transaction that occurred on Thursday, April 30th. The shares were bought at an average price of $41.00 per share, with a total value of $143,500.00. Following the acquisition, the executive vice president owned 33,024 shares of the company's stock, valued at $1,353,984. This trade represents a 11.85% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Hallie E. Kuhn sold 536 shares of Alexandria Real Estate Equities stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $48.20, for a total transaction of $25,835.20. Following the completion of the sale, the executive vice president directly owned 48,301 shares in the company, valued at $2,328,108.20. This trade represents a 1.10% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.35% of the stock is currently owned by insiders.

About Alexandria Real Estate Equities

Alexandria Real Estate Equities, Inc NYSE: ARE is a real estate investment trust specializing in the ownership, development and management of collaborative life science and technology campuses. The company's properties are designed to support research and innovation by providing specialized laboratory, office and manufacturing space tailored to biotechnology, pharmaceutical, academic and related industries.

Since its founding in 1994, Alexandria has cultivated a diversified portfolio of campuses across leading innovation clusters in North America and Europe.

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