Realty Income (NYSE:O) Stock Price Down 1.6% on Analyst Downgrade

Key Points

• Realty Income shares fell 1.6% after Mizuho cut its price target from $68 to $66 while keeping a neutral rating. The stock traded around $61.54, below its prior close of $62.53.
• Analyst sentiment remains mixed overall, with multiple firms recently raising targets or upgrading the stock, but MarketBeat says the consensus rating is still Hold with an average price target of $67.35.
• The company recently posted better-than-expected quarterly results, beating estimates on both EPS and revenue, and it also declared a monthly dividend of $0.2705 per share, implying a 5.3% yield.

Realty Income Corporation (NYSE:O - Get Free Report) traded down 1.6% on Wednesday after Mizuho lowered their price target on the stock from $68.00 to $66.00. Mizuho currently has a neutral rating on the stock. Realty Income traded as low as $61.18 and last traded at $61.5380. 6,435,829 shares changed hands during mid-day trading, an increase of 3% from the average session volume of 6,249,056 shares. The stock had previously closed at $62.53.

Other analysts also recently issued reports about the company. Cantor Fitzgerald increased their price objective on Realty Income from $60.00 to $68.00 and gave the company a "neutral" rating in a report on Friday, February 27th. Stifel Nicolaus increased their price objective on Realty Income from $67.75 to $70.50 and gave the company a "buy" rating in a report on Wednesday, February 25th. Royal Bank Of Canada increased their price objective on Realty Income from $70.00 to $71.00 and gave the company an "outperform" rating in a report on Thursday, May 7th. Loop Capital set a $69.00 price objective on Realty Income in a report on Monday, March 2nd. Finally, Evercore reiterated a "positive" rating on shares of Realty Income in a report on Wednesday, February 25th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Realty Income currently has a consensus rating of "Hold" and an average price target of $67.35.

Insiders Place Their Bets

In other Realty Income news, insider Michelle Bushore sold 7,400 shares of the stock in a transaction dated Thursday, April 2nd. The stock was sold at an average price of $62.42, for a total transaction of $461,908.00. Following the completion of the sale, the insider directly owned 67,641 shares in the company, valued at approximately $4,222,151.22. This trade represents a 9.86% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.10% 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 and reiterated a sector outperform view, signaling confidence in the REIT’s dividend and earnings outlook.
• Positive Sentiment: Freedom Capital upgraded Realty Income from hold to strong-buy, and another note said the stock was raised to buy on an attractive risk-reward setup after Q1 earnings.
• Positive Sentiment: Realty Income’s latest quarterly operating results were solid, with net income, adjusted funds from operations, and revenue all coming in better than expected, reinforcing the company’s reputation as a stable income name.
• Neutral Sentiment: Mizuho lowered its price target on Realty Income from $68 to $66 while keeping a neutral rating, which may have tempered enthusiasm despite the target still implying some upside.
• Neutral Sentiment: Analyst coverage remains mixed overall, with reports describing the stock’s consensus rating as Hold, suggesting the market is waiting for more evidence that earnings growth can accelerate.

Institutional Trading of Realty Income

Large investors have recently bought and sold shares of the business. EFG International AG acquired a new stake in shares of Realty Income in the 4th quarter valued at about $26,000. Stance Capital LLC acquired a new stake in shares of Realty Income in the 3rd quarter valued at about $27,000. Evolution Wealth Management Inc. grew its stake in shares of Realty Income by 257.1% in the 4th 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. Quattro Advisors LLC acquired a new stake in shares of Realty Income in the 4th quarter valued at about $29,000. Finally, Strengthening Families & Communities LLC grew its stake in shares of Realty Income by 586.1% in the 3rd quarter. Strengthening Families & Communities LLC now owns 494 shares of the real estate investment trust's stock valued at $30,000 after buying an additional 422 shares during the period. 70.81% of the stock is currently owned by institutional investors and hedge funds.

Realty Income Stock Performance

The company has a debt-to-equity ratio of 0.72, a quick ratio of 1.56 and a current ratio of 1.56. The company has a 50 day moving average price of $63.30 and a 200 day moving average price of $60.83. The company has a market capitalization of $57.38 billion, a price-to-earnings ratio of 50.44, a P/E/G ratio of 4.24 and a beta of 0.75.

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

Realty Income Dividend Announcement

The company also recently announced 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 is Thursday, April 30th. This represents a c) annualized dividend and a dividend yield of 5.3%. Realty Income's dividend payout ratio (DPR) is currently 266.39%.

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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