Alexandria Real Estate Equities (ARE) Rating Lowered 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 six months. Further, the stock has seen the Zacks Consensus Estimate for 2018 funds from operations (FFO) per share being revised upward 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 strong demand. This enables the company to enjoy high occupancy and generate steady rental revenues from its properties. Moreover, on Jan 8, Alexandria closed the public offering of 6.9 million shares. This adds to its existing capital buffer which will likely cushion its position during any adverse situation. However, sale of non-core assets is anticipated to have a dilutive impact on earnings and rate hike add to its woes.”

Several other brokerages also recently weighed in on ARE. Bank of America upgraded Alexandria Real Estate Equities from a “neutral” rating to a “buy” rating and set a $133.00 price objective for the company in a research report on Monday, December 4th. Royal Bank of Canada restated a “hold” rating on shares of Alexandria Real Estate Equities in a research report on Monday, October 23rd. National Bank Financial downgraded Alexandria Real Estate Equities from an “outperform” rating to a “sector perform” rating and dropped their price objective for the stock from $20.00 to $18.00 in a research report on Monday, October 23rd. Canaccord Genuity restated a “buy” rating and set a $20.37 price objective on shares of Alexandria Real Estate Equities in a research report on Monday, December 11th. Finally, Mizuho restated a “buy” rating and set a $140.00 price objective on shares of Alexandria Real Estate Equities in a research report on Wednesday, November 1st. Four investment analysts have rated the stock with a hold rating and five have given a buy rating to the company. Alexandria Real Estate Equities currently has an average rating of “Buy” and an average price target of $100.62.

Alexandria Real Estate Equities (NYSE:ARE) traded up $0.57 during trading hours on Friday, hitting $125.95. The stock had a trading volume of 616,812 shares, compared to its average volume of 1,014,877. The company has a market cap of $12,697.88, a P/E ratio of 143.13, a price-to-earnings-growth ratio of 2.82 and a beta of 0.84. The company has a current ratio of 0.21, a quick ratio of 0.21 and a debt-to-equity ratio of 0.83. Alexandria Real Estate Equities has a 1 year low of $106.89 and a 1 year high of $134.37.

Alexandria Real Estate Equities (NYSE:ARE) last announced its quarterly earnings data on Monday, October 30th. The real estate investment trust reported $0.55 earnings per share for the quarter, missing the consensus estimate of $1.51 by ($0.96). Alexandria Real Estate Equities had a return on equity of 3.69% and a net margin of 13.21%. The business had revenue of $285.60 million for the quarter, compared to the consensus estimate of $286.11 million. During the same quarter in the prior year, the company earned $1.39 earnings per share. Alexandria Real Estate Equities’s quarterly revenue was up 24.0% compared to the same quarter last year. analysts expect that Alexandria Real Estate Equities will post 6.02 EPS for the current fiscal year.

In other Alexandria Real Estate Equities news, EVP Thomas J. Andrews sold 5,000 shares of the stock in a transaction dated Thursday, November 2nd. The stock was sold at an average price of $125.26, for a total value of $626,300.00. Following the completion of the transaction, the executive vice president now directly owns 146,916 shares in the company, valued at $18,402,698.16. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Peter M. Moglia sold 1,750 shares of the stock in a transaction dated Monday, December 4th. The shares were sold at an average price of $130.00, for a total value of $227,500.00. Following the completion of the transaction, the insider now owns 115,117 shares of the company’s stock, valued at $14,965,210. The disclosure for this sale can be found here. Insiders sold 62,250 shares of company stock valued at $7,986,230 over the last quarter. Corporate insiders own 1.60% of the company’s stock.

A number of institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. raised its position in Alexandria Real Estate Equities by 6.6% in the second quarter. Vanguard Group Inc. now owns 15,723,151 shares of the real estate investment trust’s stock valued at $1,894,168,000 after purchasing an additional 970,646 shares during the last quarter. State Street Corp raised its position in Alexandria Real Estate Equities by 0.6% in the second quarter. State Street Corp now owns 4,999,505 shares of the real estate investment trust’s stock valued at $602,286,000 after purchasing an additional 30,229 shares during the last quarter. Principal Financial Group Inc. raised its position in Alexandria Real Estate Equities by 14.5% in the third quarter. Principal Financial Group Inc. now owns 3,475,698 shares of the real estate investment trust’s stock valued at $413,502,000 after purchasing an additional 440,716 shares during the last quarter. Bank of New York Mellon Corp raised its position in Alexandria Real Estate Equities by 10.0% in the third quarter. Bank of New York Mellon Corp now owns 2,361,532 shares of the real estate investment trust’s stock valued at $280,951,000 after purchasing an additional 214,164 shares during the last quarter. Finally, Cbre Clarion Securities LLC increased its stake in shares of Alexandria Real Estate Equities by 67.5% in the second quarter. Cbre Clarion Securities LLC now owns 2,244,374 shares of the real estate investment trust’s stock valued at $270,380,000 after buying an additional 904,575 shares during the period. Hedge funds and other institutional investors own 95.74% of the company’s stock.

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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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