Alexandria Real Estate Equities (NYSE:ARE) Hits New 12-Month Low – Here’s Why

Shares of Alexandria Real Estate Equities, Inc. (NYSE:ARE) hit a new 52-week low on Wednesday . The company traded as low as $96.25 and last traded at $96.71, with a volume of 207509 shares changing hands. The stock had previously closed at $97.36.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on ARE. Deutsche Bank Aktiengesellschaft downgraded shares of Alexandria Real Estate Equities from a “buy” rating to a “hold” rating and cut their target price for the company from $135.00 to $112.00 in a research note on Friday, November 15th. Royal Bank of Canada reduced their price objective on Alexandria Real Estate Equities from $125.00 to $114.00 and set a “sector perform” rating on the stock in a research note on Tuesday, December 17th. Evercore ISI decreased their target price on Alexandria Real Estate Equities from $129.00 to $124.00 and set an “in-line” rating for the company in a research report on Wednesday, October 23rd. Citigroup downgraded Alexandria Real Estate Equities from a “buy” rating to a “neutral” rating and dropped their target price for the company from $130.00 to $125.00 in a report on Friday, September 13th. Finally, JMP Securities reduced their price target on Alexandria Real Estate Equities from $140.00 to $130.00 and set a “market outperform” rating on the stock in a research report on Friday, November 15th. Nine research analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. According to MarketBeat.com, Alexandria Real Estate Equities has a consensus rating of “Hold” and a consensus target price of $121.90.

Alexandria Real Estate Equities Stock Performance

The company’s fifty day simple moving average is $105.19 and its two-hundred day simple moving average is $113.81. The company has a market capitalization of $17.02 billion, a price-to-earnings ratio of 59.40, a price-to-earnings-growth ratio of 3.87 and a beta of 1.16. The company has a debt-to-equity ratio of 0.56, a quick ratio of 0.20 and a current ratio of 0.20.

Alexandria Real Estate Equities (NYSE:ARE) last posted its quarterly earnings results on Monday, October 21st. The real estate investment trust reported $0.96 EPS for the quarter, missing analysts’ consensus estimates of $2.38 by ($1.42). Alexandria Real Estate Equities had a return on equity of 1.31% and a net margin of 9.62%. The firm had revenue of $791.60 million during the quarter, compared to analyst estimates of $766.97 million. During the same quarter last year, the business posted $2.26 earnings per share. The firm’s revenue for the quarter was up 10.9% on a year-over-year basis. Equities research analysts predict that Alexandria Real Estate Equities, Inc. will post 9.47 earnings per share for the current fiscal year.

Alexandria Real Estate Equities Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, January 15th. Stockholders of record on Tuesday, December 31st will be issued a $1.32 dividend. The ex-dividend date of this dividend is Tuesday, December 31st. This is a positive change from Alexandria Real Estate Equities’s previous quarterly dividend of $1.30. This represents a $5.28 annualized dividend and a dividend yield of 5.42%. Alexandria Real Estate Equities’s payout ratio is 321.95%.

Alexandria Real Estate Equities announced that its board has authorized a stock repurchase program on Monday, December 9th that allows the company to buyback $500.00 million in outstanding shares. This buyback authorization allows the real estate investment trust to buy up to 2.7% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its shares are undervalued.

Institutional Trading of Alexandria Real Estate Equities

Several hedge funds have recently made changes to their positions in the stock. Commonwealth Equity Services LLC boosted its holdings in shares of Alexandria Real Estate Equities by 76.0% during the second quarter. Commonwealth Equity Services LLC now owns 14,883 shares of the real estate investment trust’s stock valued at $1,741,000 after acquiring an additional 6,425 shares during the period. TD Asset Management Inc boosted its stake in Alexandria Real Estate Equities by 0.4% during the 2nd quarter. TD Asset Management Inc now owns 147,198 shares of the real estate investment trust’s stock valued at $17,218,000 after purchasing an additional 608 shares during the period. Candriam S.C.A. grew its position in Alexandria Real Estate Equities by 9.6% in the 2nd quarter. Candriam S.C.A. now owns 19,633 shares of the real estate investment trust’s stock worth $2,296,000 after purchasing an additional 1,719 shares during the last quarter. Acadian Asset Management LLC bought a new position in Alexandria Real Estate Equities in the 2nd quarter worth about $416,000. Finally, First Foundation Advisors increased its stake in shares of Alexandria Real Estate Equities by 5.2% in the second quarter. First Foundation Advisors now owns 11,893 shares of the real estate investment trust’s stock valued at $1,391,000 after purchasing an additional 591 shares during the period. Institutional investors own 96.54% of the company’s stock.

Alexandria Real Estate Equities Company Profile

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.