Nisa Investment Advisors LLC, a well-known investment firm, recently released its Form 13F filing with the Securities and Exchange Commission (SEC), indicating that it has sold 6.1% of its shares in Alexandria Real Estate Equities, Inc. (NYSE:ARE). This move by Nisa Investment Advisors LLC is regarded as a smart financial decision as the real estate investment trust’s stock has steadily dropped from its all-time high of $203.39 to a present-day amount of $123.83 opening price as recorded on Friday.
Interestingly, several recent analyst reports have been published concerning Alexandria Real Estate Equities. Robert W. Baird, a respected Wall Street analyst, raised his price target on this stock from $162 to $174 and gave an “outperform” rating on February 2nd this year. Another report came from Mizuho which boosted their target price on shares of Alexandria Real Estate Equities from $178.00 to $180.00 rating the stock with a “buy” rating on February 13th.
However, some other analysts had less positive opinions about AREs prospects; StockNews.com cut Alexandria Real Estate Equities shares down from a hold rating to a sell rating last April 13th while JMP Securities restated their buy recommendation while putting the target price at $180 in January.
Despite these mixed reviews from analysts, based on data compiled by Bloomberg, the average rating given to ARE stocks is “Moderate Buy,” with an average price target of $172.63.
Alexandria Real Estate Equities presently has a market cap of over $21 billion and a debt-to-equity ratio of 0.45. Its current and quick ratios are both at 0:35 percent respectively- making them somewhat risky investments for some traders looking for short-term gains since their ability to pay its obligations during sudden downturns could be negatively impacted.
In conclusion, considering the present circumstances and analyst reports, investors who are patient and can hold on for the long term may find Alexandria Real Estate Equities a viable inclusion to their investment portfolios. The ongoing situation with the COVID-19 pandemic worldwide has majorly affected many products and financial instruments globally including ARE stocks, and thus it is recommended that you seek professional financial advice if you plan on investing in this stock.
Significant Stock Movements and Favorable Analyst Reports for Alexandria Real Estate Equities, Inc. (ARE) Amid Mixed Quarterly Earnings and Insider Selling
Alexandria Real Estate Equities, Inc. (NYSE: ARE) has seen significant movement in its stock holdings, with several hedge funds recently modifying their stakes in the company. Leading the pack is Forsta AP Fonden, which increased its holding by 8.1% during the fourth quarter to now own 34,700 shares of the real estate investment trust stock valued at $5,055,000. Other notable movements include Legacy Wealth Asset Management LLC’s increasing stake of 4.2%, Ascent Wealth Partners’ raising of its holdings by 14.4%, ProShare Advisors LLC lifting its position by 3.2%, and Profund Advisors LLC boosting its portfolio by 4.6%. In total, institutional investors and hedge funds now own nearly 90% of ARE stock.
On another note, insiders have also been selling their shares in the company in recent months totaling over $2.7 million worth of stocks sold across different transactions. Marc E. Binda, EVP for ARE sold a total of 3,298 shares for an average price of $167.21 per share on February 6th and Hunter Kass, director for the company sold a total of 3,803 shares for approximately $636k.
Despite these movements and actions from both institutional investors and insiders alike, Alexandria Real Estate Equities recently received favorable ratings from various analyst reports including Robert W Baird and Mizuho who both raised their target prices on the company’s stock with an “outperform” rating last February; while JMP Securities restated a “buy” rating on the same month with a target price of $180 per share.
Recently released quarterly earnings gave mixed results with ALEX missing analysts’ consensus estimate for earnings per share but beating revenue forecasts with a year-over-year increase of over 16%. And although there was fall short on earnings expectations after they reported just $0.31, the real estate investment trust is forecasting a strong fiscal year with an estimated $8.95 earnings per share.
Furthermore, ALEX also confirmed a recent announcement of a quarterly dividend payout last month, which represented an annualized basis of $4.84 per share and 3.91% yield applicable for its shareholders of record spanning between March 31st and April 14th.