Highwoods Properties, Inc. (NYSE:HIW) Receives Average Rating of "Hold" from Brokerages

Key Points

• Analyst sentiment is neutral: Eight brokerages rate Highwoods Properties “Hold” on average, with six hold ratings and two buys. The average 12-month price target is $30, below the stock’s reported $33.84 opening price.
• Institutional ownership remains high: Institutional investors and hedge funds own 96.31% of HIW, with several firms—including Goldman Sachs and RBC—boosting their positions.
• Shareholder returns are a focus: Highwoods authorized a $250 million share-repurchase program covering up to 9.5% of outstanding shares and declared a quarterly dividend of $0.50 per share, representing a 5.9% annualized yield.

Shares of Highwoods Properties, Inc. (NYSE:HIW - Get Free Report) have received an average rating of "Hold" from the eight ratings firms that are currently covering the stock, Marketbeat reports. Six investment analysts have rated the stock with a hold rating and two have given a buy rating to the company. The average twelve-month target price among brokerages that have issued ratings on the stock in the last year is $30.00.

Several research firms have weighed in on HIW. Mizuho lifted their price target on shares of Highwoods Properties from $25.00 to $30.00 and gave the company a "neutral" rating in a research note on Tuesday, July 21st. Truist Financial increased their price objective on shares of Highwoods Properties from $23.00 to $30.00 and gave the stock a "hold" rating in a research report on Friday, June 26th. Weiss Ratings raised Highwoods Properties from a "hold (c-)" rating to a "hold (c)" rating in a research report on Tuesday, June 9th. Wells Fargo & Company upped their price target on Highwoods Properties from $24.00 to $26.00 and gave the stock an "equal weight" rating in a research note on Monday, June 1st. Finally, Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $28.00 price target on shares of Highwoods Properties in a report on Thursday, May 14th.

Institutional Trading of Highwoods Properties

Several hedge funds have recently bought and sold shares of HIW. Royal Bank of Canada raised its holdings in Highwoods Properties by 12.7% during the first quarter. Royal Bank of Canada now owns 177,942 shares of the real estate investment trust's stock worth $5,275,000 after buying an additional 19,998 shares during the last quarter. Goldman Sachs Group Inc. grew its holdings in shares of Highwoods Properties by 15.5% during the first quarter. Goldman Sachs Group Inc. now owns 822,655 shares of the real estate investment trust's stock valued at $24,383,000 after buying an additional 110,489 shares during the last quarter. Empowered Funds LLC grew its holdings in shares of Highwoods Properties by 10.4% during the first quarter. Empowered Funds LLC now owns 13,243 shares of the real estate investment trust's stock valued at $393,000 after buying an additional 1,248 shares during the last quarter. Geneos Wealth Management Inc. increased its position in shares of Highwoods Properties by 292.5% during the first quarter. Geneos Wealth Management Inc. now owns 1,680 shares of the real estate investment trust's stock worth $50,000 after acquiring an additional 1,252 shares in the last quarter. Finally, Cetera Investment Advisers raised its holdings in shares of Highwoods Properties by 9.4% in the 2nd quarter. Cetera Investment Advisers now owns 17,846 shares of the real estate investment trust's stock worth $555,000 after acquiring an additional 1,534 shares during the last quarter. Institutional investors and hedge funds own 96.31% of the company's stock.

Highwoods Properties Price Performance

Highwoods Properties stock opened at $33.84 on Friday. The stock has a market capitalization of $3.73 billion, a price-to-earnings ratio of 22.26 and a beta of 1.07. Highwoods Properties has a 52-week low of $20.45 and a 52-week high of $35.44. The company has a debt-to-equity ratio of 1.37, a quick ratio of 1.50 and a current ratio of 1.68. The stock's 50 day moving average price is $30.20 and its two-hundred day moving average price is $26.09.

Highwoods Properties (NYSE:HIW - Get Free Report) last released its quarterly earnings data on Tuesday, July 28th. The real estate investment trust reported $0.85 earnings per share for the quarter, missing the consensus estimate of $0.86 by ($0.01). Highwoods Properties had a net margin of 20.74% and a return on equity of 7.06%. The company had revenue of $216.38 million during the quarter, compared to the consensus estimate of $212.15 million. During the same quarter in the prior year, the firm earned $0.89 EPS. The business's revenue was up 7.9% compared to the same quarter last year. Highwoods Properties has set its FY 2026 guidance at 3.460-3.700 EPS. On average, equities analysts predict that Highwoods Properties will post 3.53 earnings per share for the current year.

Highwoods Properties declared that its Board of Directors has authorized a share repurchase program on Wednesday, April 22nd that permits the company to buyback $250.00 million in outstanding shares. This buyback authorization permits the real estate investment trust to purchase up to 9.5% of its shares through open market purchases. Shares buyback programs are typically a sign that the company's leadership believes its shares are undervalued.

Highwoods Properties Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 9th. Stockholders of record on Monday, August 17th will be given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a dividend yield of 5.9%. The ex-dividend date of this dividend is Monday, August 17th. Highwoods Properties's dividend payout ratio is presently 238.10%.

Highwoods Properties Company Profile

Highwoods Properties, Inc is a publicly traded real estate investment trust (REIT) that acquires, develops, leases and manages office properties. The company's portfolio is primarily focused on Class A office space, with an emphasis on high-quality buildings in key urban and suburban submarkets. Highwoods seeks to generate long-term, recurring revenues through a mix of in-place lease renewals, strategic dispositions and build-to-suit developments. Its asset management platform drives operational efficiencies and tenant service initiatives across its holdings.

Founded in 1970 and headquartered in Raleigh, North Carolina, Highwoods Properties has expanded its presence to eight major metropolitan regions across the Southeastern United States and Texas.

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