Zacks Investment Research Lowers Equity Residential (EQR) to Sell
Zacks Investment Research downgraded shares of Equity Residential (NYSE:EQR) from a hold rating to a sell rating in a report issued on Tuesday morning.
According to Zacks, “Shares of Equity Residential have underperformed its industry, year to date. The stock has seen the Zacks Consensus Estimate for third-quarter and current-year funds from operations (FFO) per share remaining unchanged in a month’s time. Notably, there is elevated supply in a number of its markets. This is likely to put pressure on rental rates and adversely affect revenue growth this year. Further, there is high concession activity amid higher supply, which remains a concern. Also, the company’s 2016 huge disposition activity is anticipated to affect its net operating income. Nevertheless, the company’s efforts to reposition portfolio in high barrier-to-entry/core markets is encouraging. Also, the company might benefit from favorable demographics, lifestyle transformation and creation of new households.”
A number of other brokerages have also weighed in on EQR. BidaskClub upgraded shares of Equity Residential from a hold rating to a buy rating in a report on Tuesday, June 20th. Jefferies Group LLC restated a hold rating and issued a $65.00 price objective on shares of Equity Residential in a report on Sunday, September 10th. Barclays PLC boosted their price objective on shares of Equity Residential from $65.00 to $66.00 and gave the stock an equal weight rating in a report on Tuesday, August 1st. TheStreet upgraded shares of Equity Residential from a c+ rating to a b rating in a report on Monday, July 31st. Finally, Royal Bank Of Canada restated a hold rating on shares of Equity Residential in a report on Monday, July 31st. Two research analysts have rated the stock with a sell rating, ten have given a hold rating and three have issued a buy rating to the company’s stock. The company currently has a consensus rating of Hold and a consensus price target of $68.15.
Shares of Equity Residential (NYSE EQR) traded down 0.24% during trading on Tuesday, reaching $65.90. 470,508 shares of the company’s stock traded hands. The company has a market cap of $24.21 billion, a price-to-earnings ratio of 29.49 and a beta of 0.37. The company’s 50-day moving average is $66.78 and its 200 day moving average is $66.19. Equity Residential has a 52-week low of $58.28 and a 52-week high of $68.83.
Equity Residential (NYSE:EQR) last announced its quarterly earnings data on Tuesday, July 25th. The real estate investment trust reported $0.77 earnings per share for the quarter, hitting the Zacks’ consensus estimate of $0.77. The firm had revenue of $612.48 million during the quarter, compared to analyst estimates of $609.37 million. Equity Residential had a net margin of 33.99% and a return on equity of 7.92%. The business’s quarterly revenue was up 2.9% on a year-over-year basis. During the same period in the previous year, the business posted $0.76 EPS. Equities analysts forecast that Equity Residential will post $1.48 EPS for the current year.
The company also recently announced a quarterly dividend, which was paid on Friday, October 13th. Investors of record on Monday, September 25th were paid a $0.5038 dividend. This represents a $2.02 annualized dividend and a dividend yield of 3.05%. The ex-dividend date was Friday, September 22nd. Equity Residential’s payout ratio is 90.58%.
In related news, insider Michael L. Manelis sold 433 shares of Equity Residential stock in a transaction on Tuesday, August 8th. The shares were sold at an average price of $67.03, for a total value of $29,023.99. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider David S. Santee sold 10,967 shares of Equity Residential stock in a transaction on Wednesday, August 2nd. The stock was sold at an average price of $67.93, for a total transaction of $744,988.31. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 173,622 shares of company stock worth $11,816,599. 3.79% of the stock is owned by insiders.
A number of institutional investors have recently modified their holdings of EQR. Bessemer Group Inc. increased its position in Equity Residential by 124.6% during the 2nd quarter. Bessemer Group Inc. now owns 1,572 shares of the real estate investment trust’s stock valued at $103,000 after purchasing an additional 872 shares during the period. D.A. Davidson & CO. increased its position in Equity Residential by 4.1% during the 2nd quarter. D.A. Davidson & CO. now owns 1,873 shares of the real estate investment trust’s stock valued at $123,000 after purchasing an additional 73 shares during the period. Sun Life Financial INC increased its position in Equity Residential by 22,450.0% during the 2nd quarter. Sun Life Financial INC now owns 2,706 shares of the real estate investment trust’s stock valued at $178,000 after purchasing an additional 2,694 shares during the period. Girard Partners LTD. purchased a new position in Equity Residential during the 2nd quarter valued at $209,000. Finally, Prudential PLC purchased a new position in Equity Residential during the 2nd quarter valued at $209,000. 91.05% of the stock is currently owned by institutional investors and hedge funds.
About Equity Residential
Equity Residential is a real estate investment trust. The Company’s primary business is the acquisition, development and management of multifamily residential properties. Its segments include Boston, New York, Washington DC, Southern California, San Francisco, Seattle and Other Markets. Southern California includes Los Angeles, San Diego and Orange County.
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