Equity Investment Corp Makes New $108.15 Million Investment in W.P. Carey Inc. $WPC

Key Points

• Equity Investment Corp acquired 1.51 million W.P. Carey shares worth approximately $108.15 million, representing about 0.66% of the REIT and 2.1% of the firm’s portfolio.
• Institutional ownership remains substantial at 73.73%, with BlackRock, Invesco, Norges Bank, Bank of New York Mellon and UBS among firms recently increasing or initiating positions.
• W.P. Carey raised its quarterly dividend to $0.94, or $3.76 annually, producing a 5.3% yield. Analysts’ consensus rating is “Hold,” with an average price target of $79.38 versus the reported share price of $71.09.

Equity Investment Corp acquired a new position in W.P. Carey Inc. (NYSE:WPC - Free Report) during the second quarter, according to its most recent filing with the SEC. The firm acquired 1,512,565 shares of the real estate investment trust's stock, valued at approximately $108,148,000. W.P. Carey comprises approximately 2.1% of Equity Investment Corp's holdings, making the stock its 25th biggest holding. Equity Investment Corp owned about 0.66% of W.P. Carey at the end of the most recent quarter.

Other hedge funds have also recently made changes to their positions in the company. BlackRock Inc. purchased a new position in shares of W.P. Carey during the 2nd quarter worth approximately $2,371,801,000. Invesco Ltd. raised its holdings in W.P. Carey by 416.8% in the third quarter. Invesco Ltd. now owns 3,892,462 shares of the real estate investment trust's stock worth $263,014,000 after purchasing an additional 3,139,266 shares in the last quarter. Norges Bank bought a new stake in shares of W.P. Carey during the 4th quarter valued at $184,035,000. Bank of New York Mellon Corp bought a new stake in shares of W.P. Carey during the 2nd quarter valued at $164,853,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of W.P. Carey by 31,629.0% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,163,285 shares of the real estate investment trust's stock valued at $139,229,000 after buying an additional 2,156,467 shares in the last quarter. 73.73% of the stock is owned by hedge funds and other institutional investors.

W.P. Carey Stock Performance

Shares of WPC opened at $71.09 on Wednesday. The business has a 50-day simple moving average of $72.97 and a two-hundred day simple moving average of $72.50. The company has a quick ratio of 0.22, a current ratio of 0.22 and a debt-to-equity ratio of 1.01. W.P. Carey Inc. has a 52 week low of $63.08 and a 52 week high of $77.22. The stock has a market cap of $16.20 billion, a price-to-earnings ratio of 24.26, a PEG ratio of 3.57 and a beta of 0.75.

W.P. Carey Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th were issued a $0.94 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $3.76 annualized dividend and a yield of 5.3%. This is a positive change from W.P. Carey's previous quarterly dividend of $0.93. W.P. Carey's payout ratio is currently 128.33%.

Analysts Set New Price Targets

A number of brokerages have issued reports on WPC. BMO Capital Markets lowered their price objective on W.P. Carey from $86.00 to $84.00 and set an "outperform" rating for the company in a research note on Thursday, June 18th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of W.P. Carey in a report on Friday, July 31st. Wolfe Research upgraded shares of W.P. Carey from a "peer perform" rating to an "outperform" rating and set a $85.00 target price on the stock in a research note on Monday, June 8th. Wells Fargo & Company increased their price target on shares of W.P. Carey from $77.00 to $80.00 and gave the company an "overweight" rating in a report on Monday, June 1st. Finally, UBS Group reissued a "neutral" rating on shares of W.P. Carey in a research report on Wednesday, July 29th. Seven equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, W.P. Carey presently has a consensus rating of "Hold" and a consensus target price of $79.38.

About W.P. Carey

W. P. Carey Inc is a diversified net-lease real estate investment trust specializing in single-tenant commercial properties. The company structures sale-leaseback and build-to-suit transactions to provide long-term net lease financing across a variety of asset classes, including industrial facilities, office buildings, retail centers and self-storage facilities. By employing triple net leases, W. P. Carey transfers property operating expenses, taxes and maintenance responsibility to tenants, creating a stable, predictable income stream for investors.

Founded in 1973 by William Polk Carey, the firm has expanded organically and through strategic mergers and acquisitions.

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