Realty Income Corporation $O Shares Bought by Morningstar Investment Management LLC

Key Points

• Morningstar Investment Management LLC increased its stake in Realty Income by 86.3% in the fourth quarter, buying an additional 30,601 shares and bringing its total position to 66,060 shares valued at about $3.7 million.
• Realty Income reported better-than-expected quarterly results, with EPS of $1.13 beating estimates and revenue of $1.55 billion topping forecasts. The company also raised its FY 2026 EPS guidance to 4.410-4.440.
• The company declared a monthly dividend of $0.2705 per share, implying an annualized yield of about 5.2%. However, its payout ratio is very high at 266.39%, which may raise sustainability questions.

Morningstar Investment Management LLC grew its position in shares of Realty Income Corporation (NYSE:O - Free Report) by 86.3% in the 4th quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 66,060 shares of the real estate investment trust's stock after acquiring an additional 30,601 shares during the quarter. Morningstar Investment Management LLC's holdings in Realty Income were worth $3,724,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors also recently modified their holdings of the company. Patrick M Sweeney & Associates Inc. raised its stake in shares of Realty Income by 4.5% during the fourth quarter. Patrick M Sweeney & Associates Inc. now owns 3,801 shares of the real estate investment trust's stock valued at $214,000 after purchasing an additional 164 shares in the last quarter. Sage Private Wealth Group LLC raised its stake in shares of Realty Income by 2.2% during the fourth quarter. Sage Private Wealth Group LLC now owns 7,844 shares of the real estate investment trust's stock valued at $442,000 after purchasing an additional 170 shares in the last quarter. Trust Investment Advisors raised its stake in shares of Realty Income by 0.8% during the fourth quarter. Trust Investment Advisors now owns 23,266 shares of the real estate investment trust's stock valued at $1,311,000 after purchasing an additional 178 shares in the last quarter. First National Trust Co raised its stake in shares of Realty Income by 1.2% during the fourth quarter. First National Trust Co now owns 15,109 shares of the real estate investment trust's stock valued at $852,000 after purchasing an additional 180 shares in the last quarter. Finally, Hantz Financial Services Inc. raised its stake in shares of Realty Income by 21.3% during the third quarter. Hantz Financial Services Inc. now owns 1,097 shares of the real estate investment trust's stock valued at $67,000 after purchasing an additional 193 shares in the last quarter. Institutional investors and hedge funds own 70.81% of the company's stock.

Realty Income Price Performance

Shares of Realty Income stock opened at $62.14 on Monday. The company has a current ratio of 1.56, a quick ratio of 1.56 and a debt-to-equity ratio of 0.72. The company's 50-day moving average price is $62.71 and its two-hundred day moving average price is $60.99. Realty Income Corporation has a 52 week low of $55.03 and a 52 week high of $67.93. The stock has a market cap of $57.94 billion, a PE ratio of 50.93, a price-to-earnings-growth ratio of 4.84 and a beta of 0.75.

Realty Income (NYSE:O - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The real estate investment trust reported $1.13 EPS for the quarter, topping the consensus estimate of $1.10 by $0.03. Realty Income had a net margin of 18.94% and a return on equity of 2.80%. The firm had revenue of $1.55 billion for the quarter, compared to analysts' expectations of $1.39 billion. During the same period in the previous year, the business earned $1.06 earnings per share. Realty Income's revenue for the quarter was up 12.2% compared to the same quarter last year. Realty Income has set its FY 2026 guidance at 4.410-4.440 EPS. As a group, sell-side analysts anticipate that Realty Income Corporation will post 4.45 EPS for the current fiscal year.

Realty Income Dividend Announcement

The firm also recently declared a monthly dividend, which will be paid on Monday, June 15th. Shareholders of record on Friday, May 29th will be given a $0.2705 dividend. The ex-dividend date is Friday, May 29th. This represents a c) annualized dividend and a yield of 5.2%. Realty Income's payout ratio is 266.39%.

Key Stories Impacting Realty Income

Here are the key news stories impacting Realty Income this week:

• Positive Sentiment: Higher AFFO guidance and a larger US$9.5 billion investment plan may improve confidence in Realty Income’s ability to sustain dividend growth and support valuation. Should Realty Income’s Higher AFFO Outlook And US$9.5 Billion Plan Reshape How (O) Is Valued?
• Positive Sentiment: Shareholders backed the board, auditor, and executive pay at the annual meeting, removing a potential governance overhang. Realty Income Shareholders Back Board, Auditor and Pay
• Neutral Sentiment: Analyst commentary pointed to Realty Income’s 98.9% occupancy as evidence of portfolio stability, which supports the stock’s defensive reputation but does not by itself change the outlook. Realty Income's Occupancy Edge: Can 98.9% Stability Hold?
• Neutral Sentiment: Several articles continued to feature Realty Income as a dependable dividend/income stock, reinforcing its reputation with income-focused investors rather than providing a new fundamental catalyst. Got $500? The Best Dividend Stocks to Buy Right Now

Insider Buying and Selling

In other Realty Income news, insider Michelle Bushore sold 7,400 shares of the business's stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $62.42, for a total value of $461,908.00. Following the sale, the insider directly owned 67,641 shares in the company, valued at approximately $4,222,151.22. The trade was a 9.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 0.10% of the company's stock.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on O shares. Loop Capital set a $69.00 price objective on shares of Realty Income in a research note on Monday, March 2nd. Scotiabank restated an "outperform" rating on shares of Realty Income in a research note on Tuesday, May 12th. Royal Bank Of Canada lifted their price objective on shares of Realty Income from $70.00 to $71.00 and gave the company an "outperform" rating in a research note on Thursday, May 7th. Evercore restated a "positive" rating on shares of Realty Income in a research note on Wednesday, February 25th. Finally, Mizuho cut their price objective on shares of Realty Income from $68.00 to $66.00 and set a "neutral" rating on the stock in a research note on Wednesday, May 13th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and an average price target of $67.35.

Realty Income Profile

Realty Income Corporation NYSE: O is a real estate investment trust (REIT) that acquires, owns and manages commercial properties subject primarily to long-term net lease agreements. The company's business model focuses on generating predictable, contractual rental income by leasing properties to tenants under agreements that typically place responsibility for taxes, insurance and maintenance on the tenant. Realty Income is publicly traded on the New York Stock Exchange and markets itself as a reliable income-oriented REIT.

Realty Income's portfolio is concentrated in single-tenant, retail and service-oriented properties such as drugstores, convenience stores, dollar and discount retailers, restaurants, and other essential-service businesses.

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