Alexandria Real Estate Equities (ARE) Downgraded to “Hold” at Zacks Investment Research
Alexandria Real Estate Equities (NYSE:ARE) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Friday.
According to Zacks, “Shares of Alexandria have outperformed the industry, in the past year. Further, the Zacks Consensus Estimate for fourth-quarter 2017 funds from operations (FFO) per share remained unchanged in a month’s time. The fundamentals of the life science industry remain strong and the company’s solid portfolio, consisting of Class A properties in upscale locations, enjoys high demand. This enables the company to enjoy high occupancy and generate steady rental revenues from its properties. Moreover, ushering in good news for shareholders, on Dec 4, 2017, the company announced a 5% sequential hike in quarterly cash dividend, reflecting robust cash flow and solid balance sheet. However, sale of non-core assets is anticipated to have a dilutive impact on earnings. Further rate hike add to its woes.”
A number of other equities research analysts have also weighed in on the stock. Canaccord Genuity reaffirmed a “buy” rating and set a $20.37 target price on shares of Alexandria Real Estate Equities in a research note on Monday, December 11th. Bank of America raised shares of Alexandria Real Estate Equities from a “neutral” rating to a “buy” rating and set a $133.00 target price on the stock in a research note on Monday, December 4th. Mizuho reaffirmed a “buy” rating and set a $140.00 target price on shares of Alexandria Real Estate Equities in a research note on Wednesday, November 1st. National Bank Financial lowered shares of Alexandria Real Estate Equities from an “outperform” rating to a “sector perform” rating and cut their target price for the company from $20.00 to $18.00 in a research note on Monday, October 23rd. Finally, Royal Bank of Canada reaffirmed a “hold” rating on shares of Alexandria Real Estate Equities in a research note on Monday, October 23rd. Four equities research analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. The company currently has a consensus rating of “Buy” and a consensus price target of $99.91.
Alexandria Real Estate Equities (NYSE:ARE) last announced its quarterly earnings results on Monday, October 30th. The real estate investment trust reported $0.55 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.51 by ($0.96). The firm had revenue of $285.60 million during the quarter, compared to the consensus estimate of $286.11 million. Alexandria Real Estate Equities had a return on equity of 3.69% and a net margin of 13.21%. Alexandria Real Estate Equities’s revenue was up 24.0% on a year-over-year basis. During the same period last year, the business earned $1.39 EPS. equities analysts expect that Alexandria Real Estate Equities will post 6.02 earnings per share for the current year.
In related news, CEO Joel S. Marcus sold 27,500 shares of the business’s stock in a transaction dated Monday, December 4th. The shares were sold at an average price of $129.60, for a total transaction of $3,564,000.00. Following the sale, the chief executive officer now owns 623,936 shares of the company’s stock, valued at $80,862,105.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Thomas J. Andrews sold 5,000 shares of the business’s stock in a transaction dated Thursday, November 2nd. The stock was sold at an average price of $125.26, for a total transaction of $626,300.00. Following the sale, the executive vice president now directly owns 146,916 shares in the company, valued at approximately $18,402,698.16. The disclosure for this sale can be found here. Insiders have sold a total of 62,250 shares of company stock worth $7,986,230 in the last ninety days. Insiders own 1.60% of the company’s stock.
Large investors have recently bought and sold shares of the stock. Muzinich & Co. Inc. boosted its stake in Alexandria Real Estate Equities by 30.4% during the second quarter. Muzinich & Co. Inc. now owns 943 shares of the real estate investment trust’s stock worth $114,000 after acquiring an additional 220 shares in the last quarter. Spirit of America Management Corp NY bought a new stake in Alexandria Real Estate Equities during the third quarter worth about $154,000. Simplex Trading LLC bought a new stake in Alexandria Real Estate Equities during the fourth quarter worth about $244,000. Fox Run Management L.L.C. bought a new stake in Alexandria Real Estate Equities during the third quarter worth about $226,000. Finally, California Capital Advisors Inc. bought a new stake in Alexandria Real Estate Equities during the third quarter worth about $232,000.
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Alexandria Real Estate Equities Company Profile
Alexandria Real Estate Equities, Inc is a real estate investment (REIT). The Company is engaged in the business of providing space for lease to the life science and technology industries. It focuses on collaborative life science and technology campuses. It develops urban cluster campuses and ecosystems.
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