Analysts Set Alexandria Real Estate Equities, Inc. (NYSE:ARE) Target Price at $72.43

Alexandria Real Estate Equities, Inc. (NYSE:ARE) has been given an average recommendation of “Hold” by the fifteen analysts that are currently covering the company, Marketbeat reports. Four analysts have rated the stock with a sell recommendation, seven have given a hold recommendation and four have issued a buy recommendation on the company. The average 12 month price target among brokerages that have issued a report on the stock in the last year is $72.4286.

A number of brokerages recently issued reports on ARE. Robert W. Baird dropped their price target on shares of Alexandria Real Estate Equities from $73.00 to $67.00 and set an “outperform” rating on the stock in a research note on Thursday, December 4th. Cantor Fitzgerald decreased their target price on shares of Alexandria Real Estate Equities from $52.00 to $48.00 and set a “neutral” rating for the company in a report on Friday, December 5th. Jefferies Financial Group set a $62.00 target price on shares of Alexandria Real Estate Equities and gave the stock a “hold” rating in a research note on Monday, November 3rd. Zacks Research downgraded shares of Alexandria Real Estate Equities from a “hold” rating to a “strong sell” rating in a research report on Thursday, November 6th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Alexandria Real Estate Equities from $95.00 to $65.00 in a report on Monday, November 3rd.

Alexandria Real Estate Equities Stock Performance

Alexandria Real Estate Equities stock opened at $46.62 on Wednesday. Alexandria Real Estate Equities has a twelve month low of $44.10 and a twelve month high of $105.14. The company has a quick ratio of 0.24, a current ratio of 0.24 and a debt-to-equity ratio of 0.65. The company has a market capitalization of $8.06 billion, a P/E ratio of -18.88, a PEG ratio of 3.93 and a beta of 1.32. The stock’s 50 day moving average is $59.80 and its 200 day moving average is $71.70.

Alexandria Real Estate Equities (NYSE:ARE) last announced its quarterly earnings data on Monday, October 27th. The real estate investment trust reported $2.22 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.31 by ($0.09). Alexandria Real Estate Equities had a negative net margin of 13.43% and a negative return on equity of 1.89%. The company had revenue of $751.94 million for the quarter, compared to analysts’ expectations of $752.90 million. During the same quarter in the previous year, the firm posted $2.37 EPS. The firm’s quarterly revenue was down 5.0% compared to the same quarter last year. Alexandria Real Estate Equities has set its FY 2025 guidance at 8.980-9.040 EPS. On average, equities research analysts predict that Alexandria Real Estate Equities will post 9.32 earnings per share for the current fiscal year.

Alexandria Real Estate Equities Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, January 15th. Stockholders of record on Wednesday, December 31st will be paid a $0.72 dividend. The ex-dividend date is Wednesday, December 31st. This represents a $2.88 annualized dividend and a dividend yield of 6.2%. Alexandria Real Estate Equities’s payout ratio is currently -213.77%.

Alexandria Real Estate Equities declared that its Board of Directors has authorized a share buyback program on Monday, December 8th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the real estate investment trust to reacquire up to 6.4% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s board believes its shares are undervalued.

Insider Activity

In related news, Director Sheila K. Mcgrath purchased 3,100 shares of the company’s stock in a transaction dated Wednesday, December 10th. The shares were purchased at an average price of $45.60 per share, with a total value of $141,360.00. Following the acquisition, the director directly owned 8,392 shares in the company, valued at $382,675.20. The trade was a 58.58% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 1.08% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Norges Bank bought a new stake in Alexandria Real Estate Equities in the 2nd quarter worth approximately $1,195,306,000. State Street Corp boosted its stake in shares of Alexandria Real Estate Equities by 3.7% in the 3rd quarter. State Street Corp now owns 11,273,031 shares of the real estate investment trust’s stock worth $954,117,000 after buying an additional 399,286 shares during the last quarter. Geode Capital Management LLC boosted its stake in shares of Alexandria Real Estate Equities by 1.9% in the 2nd quarter. Geode Capital Management LLC now owns 4,318,035 shares of the real estate investment trust’s stock worth $312,407,000 after buying an additional 82,591 shares during the last quarter. Invesco Ltd. grew its holdings in shares of Alexandria Real Estate Equities by 4.0% in the third quarter. Invesco Ltd. now owns 3,821,880 shares of the real estate investment trust’s stock worth $318,516,000 after acquiring an additional 145,562 shares during the period. Finally, Northern Trust Corp increased its position in Alexandria Real Estate Equities by 6.2% during the first quarter. Northern Trust Corp now owns 2,723,583 shares of the real estate investment trust’s stock valued at $251,959,000 after acquiring an additional 158,177 shares during the last quarter. Institutional investors own 96.54% of the company’s stock.

About Alexandria Real Estate Equities

Alexandria Real Estate Equities, Inc (NYSE: ARE), an S&P 500 company, is a best-in-class, mission-driven life science REIT making a positive and lasting impact on the world. As the pioneer of the life science real estate niche since our founding in 1994, Alexandria is the preeminent and longest-tenured owner, operator, and developer of collaborative life science, agtech, and advanced technology mega campuses in AAA innovation cluster locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle.