NNN REIT, Inc. (NYSE:NNN) Receives Consensus Recommendation of "Reduce" from Analysts

Key Points

• Analysts' consensus is "Reduce": Eight analysts cover NNN REIT with a consensus rating of "Reduce" (2 sell, 5 hold, 1 buy) and an average 12‑month price target of about $44.61.
• NNN pays a quarterly dividend of $0.60 ($2.40 annualized) for a yield of 5.3%, but its dividend payout ratio is very high at 115.94%, signaling potential sustainability concerns.
• Institutional ownership is substantial at 89.96%; the shares trade near $45 (market cap ~$8.6B, P/E ~21.8) and sit close to their 12‑month high of $46.03.

Shares of NNN REIT, Inc. (NYSE:NNN - Get Free Report) have been assigned an average recommendation of "Reduce" from the eight ratings firms that are currently covering the stock, Marketbeat reports. Two analysts have rated the stock with a sell rating, five have given a hold rating and one has given a buy rating to the company. The average twelve-month price objective among brokers that have issued a report on the stock in the last year is $44.6111.

A number of brokerages have recently weighed in on NNN. Robert W. Baird set a $46.00 price target on NNN REIT in a research report on Thursday, February 12th. B. Riley Financial reiterated a "neutral" rating and issued a $43.00 price objective (down from $44.00) on shares of NNN REIT in a research report on Friday, November 14th. Deutsche Bank Aktiengesellschaft raised shares of NNN REIT from a "hold" rating to a "buy" rating and set a $47.00 price objective on the stock in a research note on Tuesday, January 20th. Weiss Ratings restated a "hold (c)" rating on shares of NNN REIT in a report on Thursday, January 22nd. Finally, BNP Paribas Exane lifted their target price on shares of NNN REIT from $43.00 to $44.00 and gave the stock a "strong sell" rating in a research report on Thursday, February 12th.

Hedge Funds Weigh In On NNN REIT

Several institutional investors have recently added to or reduced their stakes in the business. Knights of Columbus Asset Advisors LLC acquired a new stake in NNN REIT in the 3rd quarter worth about $879,000. SG Americas Securities LLC increased its stake in shares of NNN REIT by 616.2% during the 3rd quarter. SG Americas Securities LLC now owns 72,410 shares of the real estate investment trust's stock valued at $3,082,000 after acquiring an additional 62,299 shares during the last quarter. Sound Income Strategies LLC increased its stake in shares of NNN REIT by 4.4% during the 3rd quarter. Sound Income Strategies LLC now owns 434,193 shares of the real estate investment trust's stock valued at $18,219,000 after acquiring an additional 18,135 shares during the last quarter. Handelsbanken Fonder AB lifted its holdings in shares of NNN REIT by 25.9% during the 3rd quarter. Handelsbanken Fonder AB now owns 67,100 shares of the real estate investment trust's stock worth $2,856,000 after acquiring an additional 13,800 shares during the period. Finally, Adams Asset Advisors LLC lifted its holdings in shares of NNN REIT by 5.8% during the 3rd quarter. Adams Asset Advisors LLC now owns 43,112 shares of the real estate investment trust's stock worth $1,835,000 after acquiring an additional 2,346 shares during the period. 89.96% of the stock is currently owned by institutional investors and hedge funds.

NNN REIT Trading Up 0.3%

Shares of NNN stock opened at $45.15 on Friday. The company has a market capitalization of $8.58 billion, a P/E ratio of 21.81, a price-to-earnings-growth ratio of 3.31 and a beta of 0.83. The company has a current ratio of 1.09, a quick ratio of 1.09 and a debt-to-equity ratio of 1.09. The business's 50 day moving average is $42.65 and its two-hundred day moving average is $41.90. NNN REIT has a twelve month low of $35.80 and a twelve month high of $46.03.

NNN REIT Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, February 13th. Shareholders of record on Friday, January 30th were paid a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a dividend yield of 5.3%. The ex-dividend date of this dividend was Friday, January 30th. NNN REIT's dividend payout ratio (DPR) is currently 115.94%.

About NNN REIT

NNN REIT NYSE: NNN, formally known as National Retail Properties, is a publicly traded real estate investment trust focused on acquiring, owning and managing a diversified portfolio of retail properties across the United States. As a net-lease REIT, the company enters into long-term, triple-net leases with national and regional tenants, shifting most property-related expenses, including maintenance, taxes and insurance, to its lessees. This structure provides NNN REIT with predictable cash flows and a stable income stream rooted in essential retail uses such as convenience stores, dollar stores, drug stores and quick-service restaurants.

Founded in 1984 and headquartered in Orlando, Florida, NNN REIT has steadily grown its footprint through disciplined acquisitions and selective lease underwriting.

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