Realty Income (NYSE:O) Trading 1% Higher - Here's Why

Key Points

• Realty Income's share price increased by 1% during recent trading, reaching a high of $58.94 and a last trade of $58.86, with volume down by 79% compared to the average.
• Analysts have revised their price targets, with Barclays setting it at $59.00 and UBS Group increasing it to $66.00, while maintaining a consensus rating of "Hold" for the stock.
• The company announced a dividend increase to $0.269 per share, yielding 5.5%, with the dividend payout ratio noted at a high 313.59%.

Realty Income Corporation (NYSE:O - Get Free Report)'s share price traded up 1% during mid-day trading on Friday . The company traded as high as $58.94 and last traded at $58.86. 1,158,356 shares were traded during mid-day trading, a decline of 79% from the average session volume of 5,496,367 shares. The stock had previously closed at $58.28.

Analysts Set New Price Targets

O has been the topic of a number of research analyst reports. Barclays raised their price objective on shares of Realty Income from $58.00 to $59.00 and gave the stock an "equal weight" rating in a report on Wednesday, August 20th. Scotiabank boosted their price objective on shares of Realty Income from $58.00 to $60.00 and gave the stock a "sector perform" rating in a research report on Thursday, August 28th. Wolfe Research lowered shares of Realty Income from an "outperform" rating to a "peer perform" rating in a report on Monday, July 14th. Finally, UBS Group increased their price objective on shares of Realty Income from $62.00 to $66.00 and gave the stock a "buy" rating in a report on Friday, August 15th. Three equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to MarketBeat.com, Realty Income currently has a consensus rating of "Hold" and a consensus price target of $62.00.

Realty Income Stock Up 1.6%

The firm has a 50-day moving average of $57.68 and a 200 day moving average of $56.94. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.85 and a quick ratio of 1.85. The stock has a market capitalization of $54.14 billion, a price-to-earnings ratio of 57.49, a PEG ratio of 4.43 and a beta of 0.77.

Realty Income (NYSE:O - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The real estate investment trust reported $1.05 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.06 by ($0.01). Realty Income had a net margin of 16.77% and a return on equity of 2.34%. The business had revenue of $1.34 billion during the quarter, compared to analyst estimates of $1.33 billion. During the same period in the previous year, the business earned $1.07 earnings per share. The business's quarterly revenue was up 5.3% on a year-over-year basis. As a group, sell-side analysts forecast that Realty Income Corporation will post 4.19 earnings per share for the current fiscal year.

Realty Income Increases Dividend

The company also recently announced a monthly dividend, which will be paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd will be paid a dividend of $0.269 per share. This represents a c) dividend on an annualized basis and a dividend yield of 5.5%. This is an increase from Realty Income's previous monthly dividend of $0.26. The ex-dividend date is Tuesday, September 2nd. Realty Income's dividend payout ratio is 313.59%.

Hedge Funds Weigh In On Realty Income

A number of hedge funds have recently added to or reduced their stakes in the stock. Moseley Investment Management Inc. boosted its stake in shares of Realty Income by 1.3% in the 2nd quarter. Moseley Investment Management Inc. now owns 13,565 shares of the real estate investment trust's stock worth $781,000 after buying an additional 175 shares during the last quarter. Castle Rock Wealth Management LLC lifted its position in shares of Realty Income by 0.6% during the second quarter. Castle Rock Wealth Management LLC now owns 27,421 shares of the real estate investment trust's stock worth $1,552,000 after acquiring an additional 177 shares in the last quarter. Creative Financial Designs Inc. ADV increased its holdings in shares of Realty Income by 10.7% in the second quarter. Creative Financial Designs Inc. ADV now owns 1,833 shares of the real estate investment trust's stock worth $106,000 after purchasing an additional 177 shares during the period. Revisor Wealth Management LLC increased its holdings in shares of Realty Income by 2.3% in the second quarter. Revisor Wealth Management LLC now owns 7,935 shares of the real estate investment trust's stock worth $454,000 after purchasing an additional 178 shares during the period. Finally, Pure Financial Advisors LLC increased its holdings in shares of Realty Income by 3.5% in the second quarter. Pure Financial Advisors LLC now owns 5,519 shares of the real estate investment trust's stock worth $318,000 after purchasing an additional 185 shares during the period. Institutional investors own 70.81% of the company's stock.

About Realty Income

Realty Income, The Monthly Dividend Company, is an S&P 500 company and member of the S&P 500 Dividend Aristocrats index. We invest in people and places to deliver dependable monthly dividends that increase over time. The company is structured as a real estate investment trust ("REIT"), and its monthly dividends are supported by the cash flow from over 15,450 real estate properties (including properties acquired in the Spirit merger in January 2024) primarily owned under long-term net lease agreements with commercial clients.

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