Alexandria Real Estate Equities (NYSE:ARE) Hits New 12-Month Low – What’s Next?

Alexandria Real Estate Equities, Inc. (NYSE:ARE) shares reached a new 52-week low during mid-day trading 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.

Analyst Ratings Changes

ARE has been the subject of a number of recent analyst reports. Royal Bank of Canada lowered their target price on shares of Alexandria Real Estate Equities from $125.00 to $114.00 and set a “sector perform” rating for the company in a research note on Tuesday, December 17th. Robert W. Baird lowered their price target on Alexandria Real Estate Equities from $137.00 to $130.00 and set an “outperform” rating for the company in a report on Friday, November 8th. BMO Capital Markets raised shares of Alexandria Real Estate Equities to a “hold” rating in a research report on Wednesday, September 25th. Citigroup lowered Alexandria Real Estate Equities from a “buy” rating to a “neutral” rating and reduced their price target for the stock from $130.00 to $125.00 in a research report on Friday, September 13th. Finally, Wedbush reaffirmed an “outperform” rating and set a $110.00 price objective (down previously from $120.00) on shares of Alexandria Real Estate Equities in a research report on Friday, December 6th. Nine analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $121.90.

Alexandria Real Estate Equities Price Performance

The company has a quick ratio of 0.20, a current ratio of 0.20 and a debt-to-equity ratio of 0.56. The firm has a market cap of $16.61 billion, a PE ratio of 57.96, a price-to-earnings-growth ratio of 3.87 and a beta of 1.16. The stock has a 50 day moving average price of $104.58 and a two-hundred day moving average price of $113.58.

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

Alexandria Real Estate Equities Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, January 15th. Shareholders of record on Tuesday, December 31st will be paid a dividend of $1.32 per share. This represents a $5.28 annualized dividend and a yield of 5.55%. The ex-dividend date is Tuesday, December 31st. This is an increase from Alexandria Real Estate Equities’s previous quarterly dividend of $1.30. Alexandria Real Estate Equities’s payout ratio is presently 321.95%.

Alexandria Real Estate Equities declared that its Board of Directors has authorized a share repurchase plan on Monday, December 9th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the real estate investment trust to repurchase up to 2.7% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board believes its shares are undervalued.

Institutional Investors Weigh In On Alexandria Real Estate Equities

Institutional investors and hedge funds have recently modified their holdings of the company. Catalyst Capital Advisors LLC purchased a new position in Alexandria Real Estate Equities during the 3rd quarter worth approximately $25,000. Ashton Thomas Securities LLC acquired a new position in Alexandria Real Estate Equities during the third quarter valued at $30,000. Venturi Wealth Management LLC boosted its holdings in Alexandria Real Estate Equities by 144.0% in the third quarter. Venturi Wealth Management LLC now owns 305 shares of the real estate investment trust’s stock valued at $36,000 after purchasing an additional 180 shares during the last quarter. Wilmington Savings Fund Society FSB acquired a new stake in Alexandria Real Estate Equities during the 3rd quarter worth about $43,000. Finally, M&R Capital Management Inc. acquired a new stake in Alexandria Real Estate Equities during the 3rd quarter worth about $50,000. Institutional investors and hedge funds 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.