Highwoods Properties (NYSE:HIW) Sets New 12-Month High - Still a Buy?

Key Points

• Highwoods Properties hit a new 52-week high, trading as high as $33.07 after rising about 1.5% on the day. The move came as the stock continued to outperform both its 50-day and 200-day moving averages.
• Analyst sentiment is mixed but generally cautious, with the stock carrying a consensus “Hold” rating and a consensus target price of $28.11. Recent moves included upgrades from Wall Street Zen and Truist raising its price target to $30, while Morgan Stanley lowered its target to $23.
• The REIT reported solid recent results and shareholder returns, beating quarterly EPS and revenue estimates, and it offers a $2.00 annual dividend yield of about 6.1%. Highwoods also authorized a $250 million share repurchase program, signaling management confidence in the stock.

Highwoods Properties, Inc. (NYSE:HIW - Get Free Report) shares reached a new 52-week high on Wednesday . The stock traded as high as $33.07 and last traded at $32.8510, with a volume of 170033 shares traded. The stock had previously closed at $32.09.

Analysts Set New Price Targets

A number of brokerages recently commented on HIW. Wall Street Zen upgraded Highwoods Properties from a "sell" rating to a "hold" rating in a research note on Monday, March 23rd. Morgan Stanley upgraded Highwoods Properties from an "underweight" rating to an "equal weight" rating and cut their target price for the company from $24.00 to $23.00 in a research note on Tuesday, March 31st. Truist Financial boosted their price target on shares of Highwoods Properties from $23.00 to $30.00 and gave the company a "hold" rating in a report on Friday, June 26th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $28.00 price target on shares of Highwoods Properties in a research report on Thursday, May 14th. Finally, Weiss Ratings raised shares of Highwoods Properties from a "hold (c-)" rating to a "hold (c)" rating in a report on Tuesday, June 9th. Two research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, Highwoods Properties presently has a consensus rating of "Hold" and a consensus target price of $28.11.

Highwoods Properties Trading Up 1.5%

The firm has a 50-day moving average of $28.35 and a 200 day moving average of $25.49. The company has a current ratio of 1.50, a quick ratio of 1.50 and a debt-to-equity ratio of 1.46. The stock has a market capitalization of $3.59 billion, a price-to-earnings ratio of 38.78 and a beta of 1.07.

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

Highwoods Properties Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 9th. Shareholders of record on Monday, May 18th were given a dividend of $0.50 per share. This represents a $2.00 dividend on an annualized basis and a dividend yield of 6.1%. The ex-dividend date was Monday, May 18th. Highwoods Properties's payout ratio is 238.10%.

Highwoods Properties announced that its Board of Directors has authorized a share repurchase program on Wednesday, April 22nd that authorizes the company to repurchase $250.00 million in shares. This repurchase authorization authorizes the real estate investment trust to repurchase up to 9.5% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company's management believes its stock is undervalued.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. Caitong International Asset Management Co. Ltd boosted its stake in Highwoods Properties by 88.6% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 792 shares of the real estate investment trust's stock valued at $25,000 after purchasing an additional 372 shares in the last quarter. Bell Investment Advisors Inc raised its stake in shares of Highwoods Properties by 921.4% in the 3rd quarter. Bell Investment Advisors Inc now owns 858 shares of the real estate investment trust's stock worth $27,000 after buying an additional 774 shares in the last quarter. Elevation Wealth Partners LLC lifted its holdings in shares of Highwoods Properties by 752.0% in the second quarter. Elevation Wealth Partners LLC now owns 1,065 shares of the real estate investment trust's stock valued at $32,000 after buying an additional 940 shares during the period. Beacon Financial Strategies CORP acquired a new stake in shares of Highwoods Properties in the fourth quarter valued at $34,000. Finally, Geneos Wealth Management Inc. boosted its stake in 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 valued at $50,000 after buying an additional 1,252 shares in the last quarter. Institutional investors and hedge funds own 96.31% of the company's stock.

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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