W.P. Carey (NYSE:WPC) Posts Quarterly Earnings Results, Beats Estimates By $0.63 EPS

Key Points

• W.P. Carey reported quarterly EPS of $1.34, beating analyst estimates of $0.71 by $0.63. The REIT posted a 29.35% net margin and 6.29% return on equity.
• The company increased its quarterly dividend from $0.93 to $0.94 per share, equivalent to an annualized $3.76 dividend and a 5.0% yield.
• Shares traded near $75.77, while analysts maintained a consensus “Hold” rating with a $78 average price target; institutional investors own 73.73% of the stock.

W.P. Carey (NYSE:WPC - Get Free Report) released its quarterly earnings results on Tuesday. The real estate investment trust reported $1.34 earnings per share for the quarter, topping the consensus estimate of $0.71 by $0.63, Zacks reports. W.P. Carey had a net margin of 29.35% and a return on equity of 6.29%.

W.P. Carey Price Performance

NYSE WPC traded down $0.44 during trading hours on Tuesday, reaching $75.77. 1,987,835 shares of the stock traded hands, compared to its average volume of 1,406,619. The company has a debt-to-equity ratio of 1.04, a current ratio of 0.35 and a quick ratio of 0.35. The stock has a 50 day simple moving average of $73.64 and a two-hundred day simple moving average of $72.06. W.P. Carey has a 1 year low of $63.08 and a 1 year high of $77.22. The company has a market cap of $16.88 billion, a price-to-earnings ratio of 32.38, a price-to-earnings-growth ratio of 2.96 and a beta of 0.76.

W.P. Carey Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th were given a dividend of $0.94 per share. The ex-dividend date was Tuesday, June 30th. This is a positive change from W.P. Carey's previous quarterly dividend of $0.93. This represents a $3.76 dividend on an annualized basis and a yield of 5.0%. W.P. Carey's dividend payout ratio (DPR) is 160.68%.

Wall Street Analysts Forecast Growth

Several research firms recently commented on WPC. Royal Bank Of Canada boosted their target price on W.P. Carey from $72.00 to $73.00 and gave the stock a "sector perform" rating in a research report on Thursday, April 30th. Wells Fargo & Company raised their price target on W.P. Carey from $77.00 to $80.00 and gave the company an "overweight" rating in a report on Monday, June 1st. Wolfe Research upgraded W.P. Carey from a "peer perform" rating to an "outperform" rating and set a $85.00 price target for the company in a research report on Monday, June 8th. Bank of America raised W.P. Carey from an "underperform" rating to a "neutral" rating and boosted their price objective for the stock from $73.00 to $83.00 in a report on Tuesday, June 16th. Finally, BMO Capital Markets decreased their price objective on shares of W.P. Carey from $86.00 to $84.00 and set an "outperform" rating on the stock in a research report on Thursday, June 18th. Six research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, W.P. Carey presently has an average rating of "Hold" and a consensus price target of $78.00.

Insider Activity

In other news, CAO Brian H. Zander sold 433 shares of the stock in a transaction dated Wednesday, May 6th. The stock was sold at an average price of $74.00, for a total transaction of $32,042.00. Following the transaction, the chief accounting officer directly owned 13,882 shares in the company, valued at approximately $1,027,268. This represents a 3.02% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.98% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the business. CIBC Private Wealth Group LLC raised its position in W.P. Carey by 64.3% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 4,984 shares of the real estate investment trust's stock worth $337,000 after purchasing an additional 1,950 shares during the period. Widmann Financial Services Inc. boosted its position in W.P. Carey by 7.9% during the fourth quarter. Widmann Financial Services Inc. now owns 4,985 shares of the real estate investment trust's stock valued at $321,000 after buying an additional 367 shares during the period. Claris Financial LLC purchased a new stake in W.P. Carey during the fourth quarter valued at about $308,000. Virtu Financial LLC bought a new position in shares of W.P. Carey during the third quarter valued at about $275,000. Finally, Advocate Investing Services LLC bought a new position in shares of W.P. Carey during the fourth quarter valued at about $274,000. 73.73% of the stock is currently owned by institutional investors.

W.P. Carey Company Profile

W. P. Carey Inc is a diversified net-lease real estate investment trust specializing in single-tenant commercial properties. The company structures sale-leaseback and build-to-suit transactions to provide long-term net lease financing across a variety of asset classes, including industrial facilities, office buildings, retail centers and self-storage facilities. By employing triple net leases, W. P. Carey transfers property operating expenses, taxes and maintenance responsibility to tenants, creating a stable, predictable income stream for investors.

Founded in 1973 by William Polk Carey, the firm has expanded organically and through strategic mergers and acquisitions.

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