Agree Realty (NYSE:ADC) Reaches New 12-Month Low - Here's What Happened

Key Points

• Agree Realty shares fell to a new 52-week low of $67.49, below the 50-day and 200-day moving averages. The stock has a consensus “Moderate Buy” rating and an average analyst price target of $83.25, despite several recent target reductions and downgrades.
• The REIT’s latest quarterly results were mixed: earnings per share of $0.44 missed estimates of $0.48, while revenue of $216.33 million exceeded forecasts and rose 16.8% year over year.
• Agree Realty announced a monthly dividend of $0.267 per share, representing an annualized yield of about 4.7%. Insiders have also purchased 47,496 shares worth approximately $3.35 million over the past three months.

Agree Realty Corporation (NYSE:ADC - Get Free Report)'s stock price hit a new 52-week low during trading on Tuesday . The company traded as low as $67.49 and last traded at $67.58, with a volume of 1336403 shares traded. The stock had previously closed at $68.05.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on ADC. Wall Street Zen downgraded shares of Agree Realty from a "hold" rating to a "sell" rating in a research note on Saturday, August 1st. Mizuho decreased their price target on shares of Agree Realty from $80.00 to $72.00 and set a "neutral" rating on the stock in a research note on Thursday, September 17th. Stifel Nicolaus lowered their price target on shares of Agree Realty from $84.00 to $81.50 and set a "buy" rating for the company in a report on Friday. Huntington began coverage on shares of Agree Realty in a research report on Wednesday, July 15th. They issued an "outperform" rating and a $84.00 price objective for the company. Finally, Weiss Ratings downgraded Agree Realty from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $83.25.

Agree Realty Price Performance

The company has a current ratio of 0.82, a quick ratio of 0.82 and a debt-to-equity ratio of 0.60. The stock has a market capitalization of $8.41 billion, a P/E ratio of 36.33, a PEG ratio of 2.22 and a beta of 0.46. The company has a fifty day simple moving average of $74.95 and a two-hundred day simple moving average of $75.92.

Agree Realty (NYSE:ADC - Get Free Report) last issued its earnings results on Thursday, July 30th. The real estate investment trust reported $0.44 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.48 by ($0.04). The business had revenue of $216.33 million during the quarter, compared to the consensus estimate of $204.53 million. Agree Realty had a net margin of 28.84% and a return on equity of 3.90%. The firm's revenue for the quarter was up 16.8% compared to the same quarter last year. During the same period last year, the business posted $1.06 EPS. Agree Realty has set its FY 2026 guidance at 4.570-4.590 EPS. Sell-side analysts expect that Agree Realty Corporation will post 4.45 EPS for the current fiscal year.

Agree Realty Announces Dividend

The firm also recently announced a monthly dividend, which will be paid on Wednesday, October 14th. Shareholders of record on Wednesday, September 30th will be given a dividend of $0.267 per share. The ex-dividend date is Wednesday, September 30th. This represents a c) annualized dividend and a dividend yield of 4.7%. Agree Realty's payout ratio is presently 172.04%.

Insiders Place Their Bets

In related news, CEO Joey Agree purchased 7,360 shares of the business's stock in a transaction dated Wednesday, September 16th. The shares were bought at an average price of $68.06 per share, with a total value of $500,921.60. Following the purchase, the chief executive officer directly owned 682,465 shares in the company, valued at $46,448,567.90. This trade represents a 1.09% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this link. Also, Director John Rakolta, Jr. purchased 20,000 shares of Agree Realty stock in a transaction dated Wednesday, September 16th. The stock was bought at an average price of $68.78 per share, for a total transaction of $1,375,600.00. Following the completion of the transaction, the director directly owned 654,602 shares in the company, valued at $45,023,525.56. The trade was a 3.15% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders bought 47,496 shares of company stock worth $3,351,120. 1.80% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Community Bank of Raymore increased its stake in Agree Realty by 11.5% in the second quarter. Community Bank of Raymore now owns 44,624 shares of the real estate investment trust's stock valued at $3,380,000 after purchasing an additional 4,600 shares in the last quarter. Integrated Wealth Concepts LLC bought a new position in shares of Agree Realty during the second quarter worth $51,000. NewEdge Advisors LLC grew its holdings in shares of Agree Realty by 2,367.6% in the 2nd quarter. NewEdge Advisors LLC now owns 2,739 shares of the real estate investment trust's stock valued at $207,000 after buying an additional 2,628 shares during the period. Squarepoint Ops LLC increased its position in shares of Agree Realty by 103.4% in the 2nd quarter. Squarepoint Ops LLC now owns 86,373 shares of the real estate investment trust's stock valued at $6,542,000 after buying an additional 43,912 shares in the last quarter. Finally, Arizona State Retirement System increased its position in shares of Agree Realty by 4.9% in the 2nd quarter. Arizona State Retirement System now owns 33,140 shares of the real estate investment trust's stock valued at $2,510,000 after buying an additional 1,555 shares in the last quarter. Institutional investors own 97.83% of the company's stock.

About Agree Realty

Agree Realty Corporation NYSE: ADC is a real estate investment trust that owns, develops, acquires and manages retail properties. The company primarily invests in freestanding, net-leased properties occupied by nationally recognized and regionally established retailers.

Under a net lease, tenants generally pay expenses such as property taxes, insurance and maintenance in addition to rent. Agree Realty's portfolio is focused largely on essential retail locations, including stores serving everyday consumer needs.

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