Realty Income Corporation (NYSE:O) Receives Consensus Rating of "Hold" from Analysts

Key Points

• Realty Income has a consensus analyst rating of “Hold” from 15 firms, with the average 1-year price target at $67.50.
• The REIT recently posted better-than-expected first-quarter results, with EPS of $1.13 versus $1.10 expected and revenue of $1.55 billion versus $1.39 billion forecast.
• Realty Income also announced a monthly dividend of $0.2705 per share, implying a 5.2% yield, while institutional investors continue to hold a large majority of the stock.

Shares of Realty Income Corporation (NYSE:O - Get Free Report) have received an average recommendation of "Hold" from the fifteen research firms that are presently covering the firm, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating, six have issued a buy rating and one has assigned a strong buy rating to the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $67.50.

O has been the subject of several research analyst reports. UBS Group increased their target price on shares of Realty Income from $66.00 to $72.00 and gave the stock a "buy" rating in a research note on Monday, March 9th. Barclays increased their target price on shares of Realty Income from $65.00 to $68.00 and gave the stock an "equal weight" rating in a research note on Tuesday, April 21st. Mizuho increased their target price on shares of Realty Income from $60.00 to $68.00 and gave the stock a "neutral" rating in a research note on Wednesday, March 11th. Wall Street Zen raised shares of Realty Income from a "sell" rating to a "hold" rating in a research note on Saturday, February 28th. Finally, Scotiabank reissued an "outperform" rating on shares of Realty Income in a research note on Tuesday.

Realty Income Trading Up 0.3%

Shares of O stock opened at $62.52 on Wednesday. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.56 and a quick ratio of 1.56. The firm has a market cap of $58.30 billion, a PE ratio of 51.24, a price-to-earnings-growth ratio of 4.24 and a beta of 0.75. The company has a 50-day moving average of $63.30 and a two-hundred day moving average of $60.83. Realty Income has a 1-year low of $54.38 and a 1-year high of $67.93.

Realty Income (NYSE:O - Get Free Report) last announced its earnings results on Wednesday, May 6th. The real estate investment trust reported $1.13 earnings per share for the quarter, topping the consensus estimate of $1.10 by $0.03. The company had revenue of $1.55 billion during the quarter, compared to analyst estimates of $1.39 billion. Realty Income had a net margin of 18.94% and a return on equity of 2.80%. Realty Income's revenue was up 12.2% compared to the same quarter last year. During the same quarter last year, the firm posted $1.06 earnings per share. Realty Income has set its FY 2026 guidance at 4.410-4.440 EPS. On average, analysts predict that Realty Income will post 4.43 EPS for the current year.

Realty Income Dividend Announcement

The firm also recently disclosed a monthly dividend, which will be paid on Friday, May 15th. Stockholders of record on Thursday, April 30th will be paid a $0.2705 dividend. The ex-dividend date of this dividend is Thursday, April 30th. This represents a c) annualized dividend and a dividend yield of 5.2%. Realty Income's dividend payout ratio (DPR) is presently 266.39%.

Insider Activity at Realty Income

In other news, insider Michelle Bushore sold 7,400 shares of the firm's stock in a transaction that occurred on Thursday, April 2nd. The shares were sold at an average price of $62.42, for a total value of $461,908.00. Following the completion of the transaction, the insider owned 67,641 shares of the company's stock, valued at approximately $4,222,151.22. This trade represents a 9.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Insiders own 0.10% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. PNC Financial Services Group Inc. boosted its stake in shares of Realty Income by 5.1% in the first quarter. PNC Financial Services Group Inc. now owns 187,759 shares of the real estate investment trust's stock valued at $11,487,000 after purchasing an additional 9,080 shares during the period. Oslo Pensjonsforsikring AS purchased a new position in shares of Realty Income in the first quarter valued at approximately $252,000. Andra AP fonden purchased a new position in shares of Realty Income in the first quarter valued at approximately $8,343,000. Cassaday & Co Wealth Management LLC purchased a new position in shares of Realty Income in the first quarter valued at approximately $106,000. Finally, Alta Advisers Ltd purchased a new position in shares of Realty Income in the first quarter valued at approximately $203,000. Hedge funds and other institutional investors own 70.81% of the company's stock.

Key Realty Income News

Here are the key news stories impacting Realty Income this week:

• Positive Sentiment: Scotiabank raised its price target on Realty Income (O) to $72 and kept a sector outperform rating, signaling more upside potential for the shares.
• Positive Sentiment: Freedom Capital upgraded Realty Income (O) from hold to strong-buy, adding to the bullish analyst sentiment around the REIT.
• Positive Sentiment: Realty Income’s first-quarter operating results showed net income of $311.8 million, or $0.33 per share, while adjusted funds from operations per share rose 6.6%, supporting the company’s dividend-focused investment case. Article Title
• Neutral Sentiment: Several dividend-income articles referenced Realty Income as a popular monthly income stock, which may keep it on investors’ radar but does not appear to be a major new fundamental catalyst.

Realty Income Company Profile

Realty Income Corporation NYSE: O is a real estate investment trust (REIT) that acquires, owns and manages commercial properties subject primarily to long-term net lease agreements. The company's business model focuses on generating predictable, contractual rental income by leasing properties to tenants under agreements that typically place responsibility for taxes, insurance and maintenance on the tenant. Realty Income is publicly traded on the New York Stock Exchange and markets itself as a reliable income-oriented REIT.

Realty Income's portfolio is concentrated in single-tenant, retail and service-oriented properties such as drugstores, convenience stores, dollar and discount retailers, restaurants, and other essential-service businesses.

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