Morgan Stanley Reiterates "Underweight" Rating for Alexandria Real Estate Equities (NYSE:ARE)

Key Points

• Morgan Stanley reiterated its "underweight" rating on Alexandria Real Estate Equities and kept a $53 price target, implying only minimal upside from the current share price.
• Analyst sentiment remains mixed overall: the stock now has an average "Hold" rating, with 3 Buy, 10 Hold, and 3 Sell ratings, and an average price target of $51.46.
• ARE shares rose 0.9% to $52.79 after the report, while the company’s latest earnings showed EPS met estimates but revenue came in below expectations and declined 11.5% year over year.

Alexandria Real Estate Equities (NYSE:ARE - Get Free Report)'s stock had its "underweight" rating reiterated by Morgan Stanley in a note issued to investors on Thursday, Marketbeat.com reports. They presently have a $53.00 price objective on the real estate investment trust's stock. Morgan Stanley's price target would suggest a potential upside of 0.39% from the company's current price.

Several other research analysts have also recently commented on ARE. Weiss Ratings restated a "sell (d)" rating on shares of Alexandria Real Estate Equities in a report on Monday, April 20th. Evercore boosted their price target on shares of Alexandria Real Estate Equities from $55.00 to $58.00 and gave the stock an "outperform" rating in a research report on Monday. JPMorgan Chase & Co. reduced their price objective on shares of Alexandria Real Estate Equities from $63.00 to $57.00 and set a "neutral" rating for the company in a research note on Tuesday, March 10th. BMO Capital Markets restated a "market perform" rating and issued a $52.00 price objective (down from $65.00) on shares of Alexandria Real Estate Equities in a report on Wednesday, March 25th. Finally, Royal Bank Of Canada lowered their target price on Alexandria Real Estate Equities from $60.00 to $50.00 and set a "sector perform" rating on the stock in a research report on Tuesday, May 5th. Three analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $51.46.

Alexandria Real Estate Equities Stock Up 0.9%

Shares of Alexandria Real Estate Equities stock traded up $0.48 during trading on Thursday, reaching $52.79. The stock had a trading volume of 94,807 shares, compared to its average volume of 2,434,085. The company has a current ratio of 0.20, a quick ratio of 0.20 and a debt-to-equity ratio of 0.65. The company has a market capitalization of $9.20 billion, a price-to-earnings ratio of -8.42, a P/E/G ratio of 6.42 and a beta of 1.19. The stock has a fifty day moving average price of $46.82 and a two-hundred day moving average price of $49.95. Alexandria Real Estate Equities has a 52 week low of $39.41 and a 52 week high of $88.24.

Alexandria Real Estate Equities (NYSE:ARE - Get Free Report) last announced its earnings results on Monday, April 27th. The real estate investment trust reported $1.73 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $1.73. Alexandria Real Estate Equities had a negative return on equity of 5.21% and a negative net margin of 36.03%.The business had revenue of $671.02 million for the quarter, compared to analyst estimates of $684.78 million. During the same quarter last year, the firm earned $2.30 EPS. Alexandria Real Estate Equities's revenue for the quarter was down 11.5% compared to the same quarter last year. Alexandria Real Estate Equities has set its FY 2026 guidance at 6.300-6.500 EPS. Sell-side analysts predict that Alexandria Real Estate Equities will post 6.4 EPS for the current fiscal year.

Insider Transactions at Alexandria Real Estate Equities

In other Alexandria Real Estate Equities news, Chairman Joel S. Marcus acquired 7,500 shares of the company's stock in a transaction on Tuesday, May 5th. The shares were purchased at an average price of $42.72 per share, for a total transaction of $320,400.00. Following the completion of the purchase, the chairman directly owned 587,724 shares of the company's stock, valued at approximately $25,107,569.28. This represents a 1.29% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Hallie E. Kuhn sold 536 shares of Alexandria Real Estate Equities stock in a transaction that occurred on Friday, April 17th. The stock was sold at an average price of $48.20, for a total value of $25,835.20. Following the transaction, the executive vice president owned 48,301 shares of the company's stock, valued at $2,328,108.20. This represents a 1.10% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.35% of the stock is owned by company insiders.

Institutional Investors Weigh In On Alexandria Real Estate Equities

Several hedge funds have recently added to or reduced their stakes in the business. Norges Bank bought a new position in shares of Alexandria Real Estate Equities in the fourth quarter valued at about $805,429,000. Invesco Ltd. boosted its holdings in shares of Alexandria Real Estate Equities by 57.9% during the 4th quarter. Invesco Ltd. now owns 6,033,304 shares of the real estate investment trust's stock worth $295,270,000 after buying an additional 2,211,424 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Alexandria Real Estate Equities by 1,022.1% in the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,813,955 shares of the real estate investment trust's stock valued at $151,175,000 after buying an additional 1,652,298 shares during the last quarter. Freestone Grove Partners LP bought a new position in Alexandria Real Estate Equities in the 4th quarter valued at about $72,144,000. Finally, Goldman Sachs Group Inc. raised its holdings in Alexandria Real Estate Equities by 52.7% in the 4th quarter. Goldman Sachs Group Inc. now owns 3,582,387 shares of the real estate investment trust's stock valued at $175,322,000 after acquiring an additional 1,236,781 shares during the period. Institutional investors and hedge funds own 96.54% of the company's stock.

Alexandria Real Estate Equities Company Profile

Alexandria Real Estate Equities, Inc NYSE: ARE is a real estate investment trust specializing in the ownership, development and management of collaborative life science and technology campuses. The company's properties are designed to support research and innovation by providing specialized laboratory, office and manufacturing space tailored to biotechnology, pharmaceutical, academic and related industries.

Since its founding in 1994, Alexandria has cultivated a diversified portfolio of campuses across leading innovation clusters in North America and Europe.

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