Realty Income (NYSE:O) Share Price Breaks Above 50 Day Moving Average – Time to Sell?

Realty Income Corporation (NYSE:O)’s stock price crossed above its 50-day moving average during trading on Monday. The stock has a 50-day moving average of $57.40 and traded as high as $57.72. Realty Income shares last traded at $57.6110, with a volume of 7,090,662 shares trading hands.

Key Headlines Impacting Realty Income

Here are the key news stories impacting Realty Income this week:

• Positive Sentiment: Realty Income reported third-quarter funds from operations (FFO) of $1.12 per share, above the $1.11 consensus estimate and up from $1.08 a year earlier. Revenue also exceeded expectations at $1.62 billion versus $1.43 billion, while reported EPS of $0.43 topped estimates by $0.02. The earnings and revenue beats likely improved investor sentiment toward O. Realty Income Corp. Tops Q3 FFO and Revenue Estimates
• Positive Sentiment: The company’s quarterly operating-results announcement and earnings call offer evidence of continued operating resilience. Realty Income’s recurring cash-flow profile and long record of monthly dividend payments remain attractive to income-focused investors, particularly with the stock yielding roughly 6%. Realty Income Announces Operating Results
• Positive Sentiment: A sharp pullback in the 10-year Treasury yield is a favorable backdrop for net-lease REITs such as Realty Income. Lower bond yields can make high-dividend stocks more competitive with fixed-income investments and reduce pressure on real-estate valuations. The 10-Year Treasury Yield Fell 33 Basis Points
• Neutral Sentiment: Despite the earnings beat, Realty Income had recently lost momentum, and analysts and investors may focus on the outlook for interest rates, acquisition activity, financing costs and future FFO growth during the earnings call. Realty Income Stock Has Lost Momentum

Analyst Ratings Changes

O has been the topic of several recent analyst reports. Mizuho set a $187.00 price target on Realty Income in a report on Monday, October 19th. Stifel Nicolaus set a $63.75 target price on Realty Income in a research note on Friday, October 9th. Royal Bank Of Canada decreased their target price on Realty Income from $71.00 to $70.00 and set an “outperform” rating for the company in a research report on Friday, August 7th. Robert W. Baird boosted their target price on shares of Realty Income from $64.00 to $65.00 and gave the company a “neutral” rating in a research note on Monday, July 6th. Finally, Huntington began coverage on shares of Realty Income in a report on Wednesday, July 15th. They issued an “outperform” rating and a $70.00 price target on the stock. Two research analysts have rated the stock with a Strong Buy rating, six have given a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $72.34.

Realty Income Price Performance

The firm has a fifty day simple moving average of $57.40 and a 200 day simple moving average of $61.59. The company has a market capitalization of $54.51 billion, a PE ratio of 42.05, a P/E/G ratio of 4.39 and a beta of 0.69. The company has a debt-to-equity ratio of 0.73, a quick ratio of 5.88 and a current ratio of 5.88.

Realty Income (NYSE:O) last issued its earnings results on Monday, November 2nd. The real estate investment trust reported $1.12 earnings per share for the quarter, beating analysts’ consensus estimates of $0.41 by $0.71. Realty Income had a return on equity of 3.12% and a net margin of 20.93%. The business had revenue of $1.62 billion during the quarter, compared to analyst estimates of $1.43 billion. During the same period in the previous year, the company posted $1.08 EPS. Realty Income’s revenue was up 10.3% on a year-over-year basis. Equities analysts anticipate that Realty Income Corporation will post 4.45 EPS for the current year.

Realty Income Dividend Announcement

The company also recently disclosed a monthly dividend, which will be paid on Friday, November 13th. Investors of record on Friday, October 30th will be issued a $0.2715 dividend. This represents a $3.26 annualized dividend and a dividend yield of 5.7%. The ex-dividend date is Friday, October 30th. Realty Income’s payout ratio is presently 237.96%.

Institutional Trading of Realty Income

Hedge funds have recently added to or reduced their stakes in the business. QRG Capital Management Inc. raised its position in Realty Income by 12.7% during the second quarter. QRG Capital Management Inc. now owns 84,300 shares of the real estate investment trust’s stock worth $5,223,000 after acquiring an additional 9,518 shares during the period. Meiji Yasuda Asset Management Co Ltd. purchased a new stake in shares of Realty Income during the second quarter worth about $17,203,000. WINTON GROUP Ltd purchased a new stake in shares of Realty Income during the second quarter worth about $936,000. Renaissance Technologies LLC purchased a new stake in shares of Realty Income during the first quarter worth about $3,147,000. Finally, M3 Wealth Management LLC acquired a new position in shares of Realty Income during the 2nd quarter worth about $2,665,000. 70.81% of the stock is owned by hedge funds and other institutional investors.

About Realty Income

Realty Income Corporation is a real estate investment trust (REIT) that owns and manages a diversified portfolio of commercial properties. The company primarily invests in single-tenant properties that are leased to businesses under long-term, net lease agreements, under which tenants generally are responsible for property taxes, insurance and maintenance.

Its portfolio includes retail, grocery, convenience store, industrial, distribution and other commercial properties. Realty Income serves a broad range of tenants and seeks to generate recurring rental income through long-term leases.