Zacks Research Issues Pessimistic Outlook for EQR Earnings

Key Points

• Zacks Research trimmed EQR's Q2 2027 EPS estimate to $1.07 (from $1.08) and now forecasts Q3/Q4 at $1.07 each and FY2027 EPS of $4.20 versus the current consensus of $3.98.
• Equity Residential raised its quarterly dividend to $0.7025 (annualized $2.81), a yield of about 4.6%, although the payout ratio is high at 95.9%.
• Analyst consensus rates EQR as a "Hold" with an average target of $69.58 while the stock trades around $60.48, indicating potential upside to the consensus target.

Equity Residential (NYSE:EQR - Free Report) - Equities researchers at Zacks Research lowered their Q2 2027 earnings per share (EPS) estimates for shares of Equity Residential in a research report issued on Thursday, April 9th. Zacks Research analyst Team now expects that the real estate investment trust will post earnings of $1.07 per share for the quarter, down from their prior forecast of $1.08. The consensus estimate for Equity Residential's current full-year earnings is $3.98 per share. Zacks Research also issued estimates for Equity Residential's Q3 2027 earnings at $1.07 EPS, Q4 2027 earnings at $1.07 EPS and FY2027 earnings at $4.20 EPS.

A number of other equities analysts have also recently commented on EQR. Piper Sandler set a $78.00 price target on Equity Residential in a research note on Tuesday, January 27th. Royal Bank Of Canada decreased their price target on Equity Residential from $70.00 to $68.00 and set an "outperform" rating on the stock in a research note on Thursday, January 15th. Argus set a $70.00 price target on Equity Residential in a research note on Thursday, March 12th. BNP Paribas Exane lifted their price target on Equity Residential from $66.00 to $68.00 and gave the stock a "neutral" rating in a research note on Tuesday, March 3rd. Finally, The Goldman Sachs Group lifted their price target on Equity Residential from $69.00 to $71.00 and gave the stock a "neutral" rating in a research note on Thursday, February 12th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and twelve have given a Hold rating to the company. According to MarketBeat.com, Equity Residential currently has a consensus rating of "Hold" and an average target price of $69.58.

Equity Residential Price Performance

Shares of Equity Residential stock opened at $60.48 on Friday. The company has a debt-to-equity ratio of 0.73, a current ratio of 0.31 and a quick ratio of 0.31. The business's 50 day simple moving average is $61.61 and its two-hundred day simple moving average is $61.65. The stock has a market capitalization of $22.83 billion, a P/E ratio of 20.64, a price-to-earnings-growth ratio of 4.59 and a beta of 0.73. Equity Residential has a one year low of $57.57 and a one year high of $72.40.

Equity Residential (NYSE:EQR - Get Free Report) last released its earnings results on Thursday, February 5th. The real estate investment trust reported $1.03 earnings per share for the quarter, missing analysts' consensus estimates of $1.04 by ($0.01). The firm had revenue of $781.91 million during the quarter, compared to the consensus estimate of $786.35 million. Equity Residential had a return on equity of 9.98% and a net margin of 36.20%.The business's quarterly revenue was up 2.0% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.00 EPS. Equity Residential has set its Q1 2026 guidance at 0.940-0.980 EPS and its FY 2026 guidance at 4.020-4.140 EPS.

Hedge Funds Weigh In On Equity Residential

Several hedge funds have recently made changes to their positions in the business. Insigneo Advisory Services LLC increased its stake in shares of Equity Residential by 4.9% during the fourth quarter. Insigneo Advisory Services LLC now owns 3,543 shares of the real estate investment trust's stock valued at $223,000 after buying an additional 165 shares during the period. Rosenberg Matthew Hamilton increased its stake in shares of Equity Residential by 69.2% during the fourth quarter. Rosenberg Matthew Hamilton now owns 440 shares of the real estate investment trust's stock valued at $28,000 after buying an additional 180 shares during the period. CX Institutional increased its stake in shares of Equity Residential by 6.1% during the third quarter. CX Institutional now owns 3,274 shares of the real estate investment trust's stock valued at $212,000 after buying an additional 189 shares during the period. Summitry LLC grew its stake in Equity Residential by 6.3% in the third quarter. Summitry LLC now owns 3,193 shares of the real estate investment trust's stock worth $207,000 after purchasing an additional 189 shares during the period. Finally, Louisiana State Employees Retirement System grew its stake in Equity Residential by 1.1% in the third quarter. Louisiana State Employees Retirement System now owns 18,200 shares of the real estate investment trust's stock worth $1,178,000 after purchasing an additional 200 shares during the period. 92.68% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, COO Michael L. Manelis sold 5,765 shares of the business's stock in a transaction that occurred on Tuesday, February 10th. The stock was sold at an average price of $65.13, for a total transaction of $375,474.45. Following the transaction, the chief operating officer directly owned 46,131 shares of the company's stock, valued at approximately $3,004,512.03. The trade was a 11.11% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Robert Garechana sold 3,637 shares of the business's stock in a transaction that occurred on Tuesday, February 10th. The shares were sold at an average price of $65.13, for a total value of $236,877.81. Following the transaction, the executive vice president directly owned 18,740 shares in the company, valued at $1,220,536.20. This trade represents a 16.25% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 10,058 shares of company stock valued at $655,078. Company insiders own 1.10% of the company's stock.

Equity Residential Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, April 10th. Stockholders of record on Monday, March 30th will be paid a dividend of $0.7025 per share. This represents a $2.81 annualized dividend and a dividend yield of 4.6%. This is a boost from Equity Residential's previous quarterly dividend of $0.69. The ex-dividend date of this dividend is Monday, March 30th. Equity Residential's payout ratio is presently 95.90%.

Equity Residential Company Profile

Equity Residential NYSE: EQR is a publicly traded real estate investment trust that acquires, develops, owns and operates rental apartment properties. Headquartered in Chicago, the company focuses on delivering professionally managed, market-rate apartment homes and related services to renters. Its operations cover a range of property types, including high-rise and mid-rise assets, with amenities and on-site management designed to support resident retention and occupancy.

The company's core activities include property acquisitions, development and redevelopment, leasing, and day-to-day property management.

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