Highwoods Properties (NYSE:HIW) Price Target Raised to $26.00

Key Points

• Wells Fargo raised its price target on Highwoods Properties from $24 to $26 while keeping an “equal weight” rating, implying only a modest downside from the prior close.
• Other analysts remain mixed on HIW: recent moves included target cuts from Citigroup and Mizuho, while Deutsche Bank reiterated a buy; overall consensus is still Hold with an average target of $27.33.
• The stock traded up 1.2% to $26.41 as the company reported solid quarterly results, including EPS of $0.29 vs. $0.16 expected, and it also authorized a $250 million share buyback.

Highwoods Properties (NYSE:HIW - Get Free Report) had its price objective upped by equities researchers at Wells Fargo & Company from $24.00 to $26.00 in a research note issued to investors on Monday,Benzinga reports. The firm presently has an "equal weight" rating on the real estate investment trust's stock. Wells Fargo & Company's target price suggests a potential downside of 1.53% from the company's previous close.

Several other brokerages have also commented on HIW. Citigroup decreased their price objective on shares of Highwoods Properties from $30.00 to $24.00 and set a "neutral" rating on the stock in a report on Wednesday, February 18th. Mizuho decreased their price objective on shares of Highwoods Properties from $30.00 to $25.00 and set a "neutral" rating on the stock in a report on Tuesday, February 24th. Wall Street Zen upgraded shares of Highwoods Properties from a "sell" rating to a "hold" rating in a report on Monday, March 23rd. Morgan Stanley upgraded shares of Highwoods Properties from an "underweight" rating to an "equal weight" rating and decreased their price objective for the stock from $24.00 to $23.00 in a report on Tuesday, March 31st. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $28.00 price objective on shares of Highwoods Properties in a report on Thursday, May 14th. Two investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. According to MarketBeat, Highwoods Properties currently has a consensus rating of "Hold" and an average price target of $27.33.

Highwoods Properties Trading Up 1.2%

Shares of Highwoods Properties stock traded up $0.31 during mid-day trading on Monday, hitting $26.41. The stock had a trading volume of 213,037 shares, compared to its average volume of 1,378,872. The firm has a 50-day moving average of $23.67 and a two-hundred day moving average of $24.84. Highwoods Properties has a 12-month low of $20.45 and a 12-month high of $32.76. The company has a quick ratio of 1.50, a current ratio of 1.50 and a debt-to-equity ratio of 1.46. The firm has a market cap of $2.91 billion, a P/E ratio of 31.38 and a beta of 1.09.

Highwoods Properties (NYSE:HIW - Get Free Report) last issued its quarterly earnings data on Tuesday, April 28th. The real estate investment trust reported $0.29 EPS for the quarter, topping the consensus estimate of $0.16 by $0.13. Highwoods Properties had a net margin of 11.64% and a return on equity of 3.97%. The firm had revenue of $214.03 million for the quarter, compared to analyst estimates of $209.06 million. During the same period in the prior year, the business posted $0.83 EPS. The business's revenue for the quarter was up 6.8% compared to the same quarter last year. Highwoods Properties has set its FY 2026 guidance at 3.400-3.68 EPS. Sell-side analysts forecast that Highwoods Properties will post 3.53 earnings per share for the current year.

Highwoods Properties announced that its Board of Directors has authorized a share buyback plan on Wednesday, April 22nd that permits the company to repurchase $250.00 million in outstanding shares. This repurchase authorization permits the real estate investment trust to repurchase up to 9.5% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's management believes its shares are undervalued.

Institutional Investors Weigh In On Highwoods Properties

A number of hedge funds and other institutional investors have recently modified their holdings of HIW. Royal Bank of Canada raised its holdings in shares of Highwoods Properties by 12.7% in the 1st quarter. Royal Bank of Canada now owns 177,942 shares of the real estate investment trust's stock valued at $5,275,000 after purchasing an additional 19,998 shares in the last quarter. Goldman Sachs Group Inc. raised its holdings in shares of Highwoods Properties by 15.5% in the 1st quarter. Goldman Sachs Group Inc. now owns 822,655 shares of the real estate investment trust's stock valued at $24,383,000 after purchasing an additional 110,489 shares in the last quarter. Empowered Funds LLC raised its holdings in shares of Highwoods Properties by 10.4% in the 1st quarter. Empowered Funds LLC now owns 13,243 shares of the real estate investment trust's stock valued at $393,000 after purchasing an additional 1,248 shares in the last quarter. Geneos Wealth Management Inc. raised its holdings in shares of Highwoods Properties by 292.5% in the 1st quarter. Geneos Wealth Management Inc. now owns 1,680 shares of the real estate investment trust's stock valued at $50,000 after purchasing 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 valued at $555,000 after purchasing an additional 1,534 shares in the last quarter. 96.31% of the stock is currently owned by institutional investors and hedge funds.

About Highwoods Properties

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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