Realty Income (NYSE:O) Hits New 1-Year Low After Analyst Downgrade

Key Points

• Realty Income shares hit a new 52-week low of $55.72 after Scotiabank downgraded the stock from “sector outperform” to “sector perform” and set a $59 price target.
• Analyst sentiment is mixed, with a consensus “Hold” rating and an average price target of $66.23, implying potential upside from recent trading levels.
• The REIT reported quarterly earnings in line with estimates and revenue above forecasts, while raising its monthly dividend to $0.2715 per share, equivalent to an approximately 5.9% yield.

Realty Income Corporation (NYSE:O - Get Free Report) shares reached a new 52-week low during trading on Wednesday after Scotiabank downgraded the stock from a sector outperform rating to a sector perform rating. Scotiabank now has a $59.00 price target on the stock. Realty Income traded as low as $55.72 and last traded at $55.31, with a volume of 1147245 shares. The stock had previously closed at $56.53.

A number of other research firms have also recently commented on O. Huntington started coverage on Realty Income in a research report on Wednesday, July 15th. They set an "outperform" rating and a $70.00 target price on the stock. Evercore set a $65.00 price target on Realty Income in a research note on Monday. Jefferies Financial Group initiated coverage on Realty Income in a research report on Monday, June 1st. They set a "buy" rating and a $69.00 price target on the stock. Wells Fargo & Company decreased their price objective on Realty Income from $65.00 to $64.00 and set an "equal weight" rating for the company in a report on Tuesday, September 1st. Finally, Royal Bank Of Canada lowered their target price on shares of Realty Income from $71.00 to $70.00 and set an "outperform" rating on the stock in a research report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, eight have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $66.23.

Institutional Trading of Realty Income

Hedge funds and other institutional investors have recently made changes to their positions in the company. Dunhill Financial LLC purchased a new stake in Realty Income in the 2nd quarter valued at approximately $27,000. Evolution Wealth Management Inc. lifted its stake in shares of Realty Income by 257.1% during the fourth quarter. Evolution Wealth Management Inc. now owns 500 shares of the real estate investment trust's stock valued at $28,000 after buying an additional 360 shares during the period. Sankala Group LLC acquired a new stake in Realty Income during the fourth quarter worth approximately $32,000. Fiduciary Financial Advisors purchased a new stake in Realty Income in the 2nd quarter worth approximately $36,000. Finally, MV Capital Management Inc. acquired a new position in Realty Income in the 4th quarter valued at $40,000. Hedge funds and other institutional investors own 70.81% of the company's stock.

Realty Income Trading Down 1.5%

The business has a 50 day simple moving average of $62.16 and a two-hundred day simple moving average of $62.39. The company has a current ratio of 5.88, a quick ratio of 5.88 and a debt-to-equity ratio of 0.73. The company has a market cap of $52.67 billion, a PE ratio of 40.58, a price-to-earnings-growth ratio of 4.03 and a beta of 0.71.

Realty Income (NYSE:O - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The real estate investment trust reported $1.09 EPS for the quarter, hitting analysts' consensus estimates of $1.09. The business had revenue of $1.55 billion during the quarter, compared to the consensus estimate of $1.40 billion. Realty Income had a return on equity of 3.12% and a net margin of 20.93%.The business's revenue for the quarter was up 9.7% on a year-over-year basis. During the same period in the prior year, the firm posted $1.05 EPS. Realty Income has set its FY 2026 guidance at 4.440-4.450 EPS. On average, analysts forecast that Realty Income Corporation will post 4.42 EPS for the current fiscal year.

Realty Income Increases Dividend

The business also recently disclosed a monthly dividend, which will be paid on Thursday, October 15th. Investors of record on Wednesday, September 30th will be given a dividend of $0.2715 per share. The ex-dividend date is Wednesday, September 30th. This represents a c) dividend on an annualized basis and a yield of 5.9%. This is an increase from Realty Income's previous monthly dividend of $0.27. Realty Income's payout ratio is presently 237.23%.

About Realty Income

Realty Income Corporation is a real estate investment trust (REIT) that owns and manages a diversified portfolio of commercial properties. The company primarily uses long-term, single-tenant, net lease agreements, under which tenants generally assume responsibility for property-level expenses such as maintenance, insurance and taxes.

Its portfolio includes retail, industrial, distribution, office, gaming and other commercial properties. Realty Income serves a broad range of tenants, including convenience stores, grocery stores, pharmacies, home improvement retailers, restaurants, logistics operators and other established businesses.

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