Highwoods Properties (NYSE:HIW) Reaches New 12-Month High - Here's Why

Key Points

• Highwoods Properties reached a new 52-week high of $33.94, while analysts remain cautious: the consensus rating is “Hold” with an average price target of $30.00.
• The REIT beat quarterly earnings and revenue estimates, reporting $0.29 in EPS and $214.03 million in revenue. It also declared a $0.50 quarterly dividend, representing a 5.9% annualized yield, and authorized a $250 million share buyback.
• Institutional investors own 96.31% of Highwoods Properties’ shares, with major holders including Vanguard, State Street and AEW Capital Management increasing their positions.

Highwoods Properties, Inc. (NYSE:HIW - Get Free Report)'s stock price reached a new 52-week high on Monday . The company traded as high as $33.94 and last traded at $33.67, with a volume of 34590 shares changing hands. The stock had previously closed at $33.65.

Analyst Ratings Changes

HIW has been the subject of several research analyst reports. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $28.00 target price on shares of Highwoods Properties in a research report on Thursday, May 14th. Weiss Ratings upgraded Highwoods Properties from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, June 9th. Morgan Stanley upped their price target on shares of Highwoods Properties from $23.00 to $35.00 and gave the stock an "equal weight" rating in a research report on Wednesday, July 22nd. Truist Financial lifted their price target on Highwoods Properties from $23.00 to $30.00 and gave the company a "hold" rating in a report on Friday, June 26th. Finally, Mizuho lifted their target price on Highwoods Properties from $25.00 to $30.00 and gave the company a "neutral" rating in a research note on Tuesday, July 21st. Two analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $30.00.

Highwoods Properties Trading Up 0.7%

The company has a market capitalization of $3.74 billion, a price-to-earnings ratio of 40.32 and a beta of 1.07. The firm has a 50-day moving average price of $29.52 and a 200-day moving average price of $25.90. The company has a current ratio of 1.50, a quick ratio of 1.50 and a debt-to-equity ratio of 1.46.

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

Highwoods Properties Announces Dividend

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

Highwoods Properties declared that its board has initiated a stock buyback program on Wednesday, April 22nd that allows the company to repurchase $250.00 million in outstanding shares. This repurchase authorization allows the real estate investment trust to reacquire up to 9.5% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company's board believes its stock is undervalued.

Institutional Investors Weigh In On Highwoods Properties

A number of institutional investors and hedge funds have recently modified their holdings of HIW. Vanguard Group Inc. boosted its position in shares of Highwoods Properties by 2.5% in the 4th quarter. Vanguard Group Inc. now owns 16,903,497 shares of the real estate investment trust's stock valued at $436,448,000 after purchasing an additional 407,406 shares during the period. State Street Corp raised its holdings in shares of Highwoods Properties by 1.2% during the fourth quarter. State Street Corp now owns 6,699,130 shares of the real estate investment trust's stock valued at $172,972,000 after acquiring an additional 81,348 shares during the period. Aew Capital Management L P grew its position in Highwoods Properties by 3.8% during the 4th quarter. Aew Capital Management L P now owns 2,433,243 shares of the real estate investment trust's stock worth $62,826,000 after purchasing an additional 88,672 shares in the last quarter. Daiwa Securities Group Inc. raised its stake in Highwoods Properties by 0.7% during the 3rd quarter. Daiwa Securities Group Inc. now owns 2,205,348 shares of the real estate investment trust's stock valued at $70,174,000 after purchasing an additional 14,410 shares during the period. Finally, Geode Capital Management LLC lifted its holdings in shares of Highwoods Properties by 0.8% in the fourth quarter. Geode Capital Management LLC now owns 2,149,230 shares of the real estate investment trust's stock valued at $55,503,000 after purchasing an additional 16,327 shares in the last quarter. Institutional investors and hedge funds own 96.31% of the company's stock.

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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