Realty Income (NYSE:O) Stock Price Down 1.1% - Should You Sell?

Key Points

• Shares fell about 1.1% to $63.36 on Friday with trading volume roughly 37% below its average (3.99M shares), leaving the stock near its 50-day moving average of $63.97.
• Analysts' consensus is a Hold with an average price target of $66.61; ratings are mixed (6 Buy, 9 Hold, 1 Sell) and several firms recently raised targets into the high-$60s/low-$70s.
• Realty Income declared a monthly dividend of $0.2705 (annualized yield ~5.1%), though the reported dividend payout ratio of 277.78% may prompt questions about dividend sustainability.

Shares of Realty Income Corporation (NYSE:O - Get Free Report) fell 1.1% during mid-day trading on Friday . The company traded as low as $63.31 and last traded at $63.3550. 3,994,728 shares were traded during trading, a decline of 37% from the average session volume of 6,295,347 shares. The stock had previously closed at $64.08.

Analysts Set New Price Targets

A number of research firms have issued reports on O. Wall Street Zen upgraded shares of Realty Income from a "sell" rating to a "hold" rating in a report on Saturday, February 28th. Loop Capital set a $69.00 price target on shares of Realty Income in a report on Monday, March 2nd. Mizuho upped their price target on shares of Realty Income from $60.00 to $68.00 and gave the company a "neutral" rating in a report on Wednesday, March 11th. Stifel Nicolaus upped their price target on shares of Realty Income from $67.75 to $70.50 and gave the company a "buy" rating in a report on Wednesday, February 25th. Finally, Freedom Capital cut shares of Realty Income from a "strong-buy" rating to a "hold" rating in a report on Monday, March 2nd. Six research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $66.61.

Realty Income Price Performance

The stock's 50-day moving average price is $63.97 and its 200 day moving average price is $60.54. The firm has a market cap of $59.08 billion, a price-to-earnings ratio of 54.15, a price-to-earnings-growth ratio of 4.29 and a beta of 0.79. The company has a quick ratio of 1.40, a current ratio of 1.40 and a debt-to-equity ratio of 0.72.

Realty Income (NYSE:O - Get Free Report) last announced its quarterly earnings data on Tuesday, February 24th. The real estate investment trust reported $1.08 EPS for the quarter, meeting analysts' consensus estimates of $1.08. The business had revenue of $1.40 billion during the quarter, compared to analyst estimates of $1.40 billion. Realty Income had a net margin of 18.41% and a return on equity of 2.68%. The firm's revenue for the quarter was up 11.0% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.05 earnings per share. Realty Income has set its FY 2026 guidance at 4.380-4.420 EPS. Equities research analysts predict that Realty Income Corporation will post 4.45 earnings per share for the current year.

Realty Income Dividend Announcement

The business also recently disclosed a monthly dividend, which will be paid on Friday, May 15th. Stockholders of record on Thursday, April 30th will be given a dividend of $0.2705 per share. The ex-dividend date of this dividend is Thursday, April 30th. This represents a c) dividend on an annualized basis and a dividend yield of 5.1%. Realty Income's dividend payout ratio is currently 277.78%.

Insider Activity at Realty Income

In other news, insider Michelle Bushore sold 7,400 shares of the company's stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $62.42, for a total transaction 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 represents a 9.86% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.10% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. raised its position in Realty Income by 0.5% in the fourth quarter. Vanguard Group Inc. now owns 150,415,287 shares of the real estate investment trust's stock worth $8,478,910,000 after purchasing an additional 684,949 shares in the last quarter. State Street Corp raised its position in Realty Income by 0.8% in the fourth quarter. State Street Corp now owns 63,559,987 shares of the real estate investment trust's stock worth $3,599,676,000 after purchasing an additional 531,095 shares in the last quarter. Geode Capital Management LLC raised its position in Realty Income by 2.8% in the fourth quarter. Geode Capital Management LLC now owns 29,206,196 shares of the real estate investment trust's stock worth $1,655,991,000 after purchasing an additional 793,100 shares in the last quarter. Morgan Stanley raised its position in Realty Income by 21.6% in the fourth quarter. Morgan Stanley now owns 18,291,294 shares of the real estate investment trust's stock worth $1,031,080,000 after purchasing an additional 3,252,091 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its position in Realty Income by 1.5% in the fourth quarter. Dimensional Fund Advisors LP now owns 12,863,638 shares of the real estate investment trust's stock worth $725,144,000 after purchasing an additional 192,467 shares in the last quarter. Institutional investors and hedge funds own 70.81% of the company's stock.

About Realty Income

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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