Hsbc Holdings PLC Raises Position in Alexandria Real Estate Equities, Inc. $ARE

Key Points

• HSBC Holdings PLC nearly doubled its stake in Alexandria Real Estate Equities in the fourth quarter, increasing its position by 92.9% to 1,056,161 shares worth about $51.7 million.
• Institutional ownership remains very high, with several other funds also adding shares and 96.54% of the stock owned by institutional investors.
• Analysts are cautious on ARE: the stock has a Hold consensus rating with an average target price of $51.85, while the company also pays a quarterly dividend of $0.72, implying a 5.5% annualized yield.

Hsbc Holdings PLC lifted its position in shares of Alexandria Real Estate Equities, Inc. (NYSE:ARE - Free Report) by 92.9% in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,056,161 shares of the real estate investment trust's stock after acquiring an additional 508,578 shares during the period. Hsbc Holdings PLC owned approximately 0.61% of Alexandria Real Estate Equities worth $51,666,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in ARE. Rockefeller Capital Management L.P. increased its holdings in shares of Alexandria Real Estate Equities by 44.3% in the 4th quarter. Rockefeller Capital Management L.P. now owns 4,660 shares of the real estate investment trust's stock worth $228,000 after purchasing an additional 1,431 shares in the last quarter. Corient Private Wealth LLC boosted its position in shares of Alexandria Real Estate Equities by 52.9% during the fourth quarter. Corient Private Wealth LLC now owns 36,557 shares of the real estate investment trust's stock valued at $1,790,000 after buying an additional 12,649 shares during the last quarter. Flax Pond Capital LLC purchased a new stake in shares of Alexandria Real Estate Equities during the fourth quarter valued at $2,809,000. Alpine Global Management LLC purchased a new stake in shares of Alexandria Real Estate Equities during the fourth quarter valued at $201,000. Finally, MidFirst Bank bought a new stake in Alexandria Real Estate Equities in the 4th quarter worth about $156,000. 96.54% of the stock is owned by institutional investors.

Insider Buying and Selling

In related news, Chairman Joel S. Marcus purchased 7,500 shares of Alexandria Real Estate Equities stock in a transaction on Tuesday, May 5th. The stock was acquired at an average price of $42.72 per share, for a total transaction of $320,400.00. Following the completion of the transaction, the chairman directly owned 587,724 shares in the company, valued at $25,107,569.28. This represents a 1.29% increase in their position. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Hallie E. Kuhn sold 536 shares of the firm's stock in a transaction dated Friday, April 17th. The stock was sold at an average price of $48.20, for a total value of $25,835.20. Following the completion of the transaction, 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. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.35% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on ARE. Jefferies Financial Group decreased their target price on Alexandria Real Estate Equities from $57.00 to $47.00 and set a "hold" rating for the company in a research report on Tuesday, April 14th. BNP Paribas Exane lifted their price target on shares of Alexandria Real Estate Equities from $44.00 to $45.00 and gave the stock an "underperform" rating in a research note on Wednesday, July 1st. The Goldman Sachs Group reissued a "neutral" rating and set a $52.00 price objective on shares of Alexandria Real Estate Equities in a report on Tuesday, May 19th. JPMorgan Chase & Co. lowered their price objective on shares of Alexandria Real Estate Equities from $63.00 to $57.00 and set a "neutral" rating on the stock in a research report on Tuesday, March 10th. Finally, Cantor Fitzgerald dropped their target price on shares of Alexandria Real Estate Equities from $60.00 to $43.00 and set a "neutral" rating on the stock in a report on Wednesday, April 29th. Three analysts have rated the stock with a Buy rating, ten have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and an average target price of $51.85.

Alexandria Real Estate Equities Stock Performance

ARE opened at $52.54 on Monday. The company has a current ratio of 0.20, a quick ratio of 0.20 and a debt-to-equity ratio of 0.65. The company has a market cap of $9.16 billion, a price-to-earnings ratio of -8.38, a PEG ratio of 6.37 and a beta of 1.17. The company's 50 day moving average is $49.20 and its 200 day moving average is $50.31. Alexandria Real Estate Equities, Inc. has a 12-month low of $39.41 and a 12-month high of $88.24.

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 EPS for the quarter, meeting analysts' consensus estimates of $1.73. Alexandria Real Estate Equities had a negative net margin of 36.03% and a negative return on equity of 5.21%. The business had revenue of $671.02 million during the quarter, compared to analysts' expectations of $684.78 million. During the same period in the prior year, the company earned $2.30 earnings per share. The firm's revenue was down 11.5% on a year-over-year basis. Alexandria Real Estate Equities has set its FY 2026 guidance at 6.300-6.500 EPS. On average, equities research analysts predict 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 announced a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th will be issued a $0.72 dividend. This represents a $2.88 dividend on an annualized basis and a yield of 5.5%. The ex-dividend date of this dividend is Tuesday, June 30th. Alexandria Real Estate Equities's dividend payout ratio (DPR) is currently -45.93%.

Alexandria Real Estate Equities Profile

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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