Zacks Research Has Bearish Estimate for ARE Q1 Earnings

Key Points

• Zacks Research trimmed its Q1 2027 EPS estimate for Alexandria Real Estate Equities to $1.46 from $1.47, reinforcing a slightly more cautious outlook for the REIT.
• The company’s most recent quarter showed mixed results: EPS of $1.73 matched expectations, but revenue of $671.0 million came in below estimates and fell 11.5% year over year.
• Wall Street remains cautious overall, with a Hold consensus rating and an average target price of $51.08, while the stock also offers a quarterly dividend of $0.72 per share, or a 5.8% yield.

Alexandria Real Estate Equities, Inc. (NYSE:ARE - Free Report) - Research analysts at Zacks Research cut their Q1 2027 earnings per share (EPS) estimates for Alexandria Real Estate Equities in a report released on Monday, July 20th. Zacks Research analyst Team now expects that the real estate investment trust will post earnings of $1.46 per share for the quarter, down from their prior estimate of $1.47. The consensus estimate for Alexandria Real Estate Equities' current full-year earnings is $6.37 per share. Zacks Research also issued estimates for Alexandria Real Estate Equities' Q2 2027 earnings at $1.46 EPS, Q3 2027 earnings at $1.42 EPS, Q4 2027 earnings at $1.23 EPS, FY2027 earnings at $5.56 EPS, Q1 2028 earnings at $1.39 EPS, Q2 2028 earnings at $1.40 EPS and FY2028 earnings at $5.62 EPS.

Alexandria Real Estate Equities (NYSE:ARE - Get Free Report) last posted its earnings results on Monday, April 27th. The real estate investment trust reported $1.73 earnings per share for the quarter, meeting the consensus estimate of $1.73. The company had revenue of $671.02 million for the quarter, compared to analyst estimates of $684.78 million. Alexandria Real Estate Equities had a negative return on equity of 5.21% and a negative net margin of 36.03%.Alexandria Real Estate Equities's revenue was down 11.5% compared to the same quarter last year. During the same quarter in the prior year, the company earned $2.30 earnings per share. Alexandria Real Estate Equities has set its FY 2026 guidance at 6.300-6.500 EPS.

Other equities analysts also recently issued reports about the stock. BNP Paribas Exane raised their target price on shares of Alexandria Real Estate Equities from $44.00 to $45.00 and gave the company an "underperform" rating in a report on Wednesday, July 1st. Robert W. Baird reaffirmed a "neutral" rating and issued a $46.00 price target (down from $67.00) on shares of Alexandria Real Estate Equities in a report on Monday, May 4th. Evercore increased their price target on shares of Alexandria Real Estate Equities from $58.00 to $60.00 and gave the company an "outperform" rating in a research report on Wednesday, July 1st. Citigroup reissued an "outperform" rating on shares of Alexandria Real Estate Equities in a research note on Monday, May 4th. Finally, Jefferies Financial Group cut their price objective on Alexandria Real Estate Equities from $57.00 to $47.00 and set a "hold" rating for the company in a research report on Tuesday, April 14th. Three investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Alexandria Real Estate Equities presently has a consensus rating of "Hold" and a consensus target price of $51.08.

Alexandria Real Estate Equities Price Performance

Alexandria Real Estate Equities stock opened at $50.05 on Tuesday. The firm has a market capitalization of $8.72 billion, a PE ratio of -7.98, a P/E/G ratio of 6.11 and a beta of 1.17. Alexandria Real Estate Equities has a 52 week low of $39.41 and a 52 week high of $88.24. The firm's 50-day simple moving average is $50.18 and its 200 day simple moving average is $50.35. The company has a quick ratio of 0.20, a current ratio of 0.20 and a debt-to-equity ratio of 0.65.

Alexandria Real Estate Equities Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th were given a $0.72 dividend. This represents a $2.88 dividend on an annualized basis and a dividend yield of 5.8%. The ex-dividend date of this dividend was Tuesday, June 30th. Alexandria Real Estate Equities's payout ratio is currently -45.93%.

Insider Activity

In other news, EVP Gregory Calvin Thomas bought 3,500 shares of the stock in a transaction on Thursday, April 30th. The stock was purchased at an average cost of $41.00 per share, with a total value of $143,500.00. Following the purchase, the executive vice president owned 33,024 shares of the company's stock, valued at approximately $1,353,984. The trade was a 11.85% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. Also, CFO Marc E. Binda sold 2,000 shares of the business's stock in a transaction on Tuesday, June 9th. The shares were sold at an average price of $54.00, for a total value of $108,000.00. Following the completion of the transaction, the chief financial officer owned 188,264 shares of the company's stock, valued at $10,166,256. This trade represents a 1.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 1.35% of the company's stock.

Institutional Investors Weigh In On Alexandria Real Estate Equities

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Farther Finance Advisors LLC grew its position in Alexandria Real Estate Equities by 18.1% during the 4th quarter. Farther Finance Advisors LLC now owns 1,228 shares of the real estate investment trust's stock worth $60,000 after purchasing an additional 188 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in shares of Alexandria Real Estate Equities by 0.9% in the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 23,443 shares of the real estate investment trust's stock valued at $1,711,000 after purchasing an additional 198 shares in the last quarter. New Mexico Educational Retirement Board lifted its holdings in shares of Alexandria Real Estate Equities by 2.9% in the fourth quarter. New Mexico Educational Retirement Board now owns 7,200 shares of the real estate investment trust's stock valued at $352,000 after purchasing an additional 200 shares in the last quarter. CIBC Private Wealth Group LLC boosted its position in shares of Alexandria Real Estate Equities by 109.6% in the third quarter. CIBC Private Wealth Group LLC now owns 436 shares of the real estate investment trust's stock worth $36,000 after buying an additional 228 shares during the period. Finally, Quarry LP boosted its position in shares of Alexandria Real Estate Equities by 33.9% in the fourth quarter. Quarry LP now owns 991 shares of the real estate investment trust's stock worth $48,000 after buying an additional 251 shares during the period. Hedge funds and other institutional investors own 96.54% of the company's stock.

Alexandria Real Estate Equities Company Profile

Alexandria Real Estate Equities, Inc NYSE: ARE is a real estate investment trust specializing in the ownership, development and management of collaborative life science and technology campuses. The company's properties are designed to support research and innovation by providing specialized laboratory, office and manufacturing space tailored to biotechnology, pharmaceutical, academic and related industries.

Since its founding in 1994, Alexandria has cultivated a diversified portfolio of campuses across leading innovation clusters in North America and Europe.

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