Digital Realty Trust (NYSE:DLR) Shares Gap Up After Analyst Upgrade

Shares of Digital Realty Trust, Inc. (NYSE:DLR) gapped up before the market opened on Friday after Wall Street Zen upgraded the stock from a sell rating to a hold rating. The stock had previously closed at $179.34, but opened at $190.00. Digital Realty Trust shares last traded at $203.0860, with a volume of 2,076,475 shares traded.

Several other research firms also recently weighed in on DLR. Cantor Fitzgerald reissued an “overweight” rating and issued a $211.00 price target on shares of Digital Realty Trust in a research note on Friday, May 1st. Citigroup reissued a “market outperform” rating on shares of Digital Realty Trust in a research note on Friday. Wells Fargo & Company boosted their target price on Digital Realty Trust from $195.00 to $220.00 and gave the stock an “overweight” rating in a report on Tuesday, April 21st. HSBC lowered Digital Realty Trust from a “buy” rating to a “hold” rating and upped their price target for the company from $193.00 to $210.00 in a research report on Monday, April 27th. Finally, Stifel Nicolaus increased their price target on Digital Realty Trust from $230.00 to $235.00 and gave the company a “buy” rating in a report on Friday, April 24th. One analyst has rated the stock with a Strong Buy rating, twenty-three have given a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $217.38.

Key Headlines Impacting Digital Realty Trust

Here are the key news stories impacting Digital Realty Trust this week:

• Positive Sentiment: Digital Realty reported Q2 results that showed strong leasing activity, a record backlog, and higher renewal rents, which helped the company beat FFO expectations and improve its 2026 outlook.
• Positive Sentiment: The company raised FY 2026 adjusted FFO guidance to $8.15-$8.20 per share and lifted revenue guidance to $6.9 billion-$7.0 billion, signaling confidence in continued cloud and AI-driven demand.
• Positive Sentiment: TD Cowen upgraded Digital Realty Trust to Buy from Hold and raised its price target to $222 from $192, citing stronger data center demand. Article Title
• Positive Sentiment: JPMorgan also raised its price target on DLR to $235 from $230 and reiterated an Overweight rating, implying additional upside from current levels. Article Title
• Neutral Sentiment: Despite the upbeat guidance, the company’s reported EPS of $1.21 came in well below Wall Street expectations, so investors are balancing the earnings miss against the stronger operating trends.

Institutional Trading of Digital Realty Trust

Hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. lifted its holdings in Digital Realty Trust by 1.6% in the fourth quarter. Vanguard Group Inc. now owns 54,260,359 shares of the real estate investment trust’s stock valued at $8,394,620,000 after acquiring an additional 854,828 shares during the last quarter. Cohen & Steers Inc. increased its stake in Digital Realty Trust by 18.0% during the fourth quarter. Cohen & Steers Inc. now owns 28,001,340 shares of the real estate investment trust’s stock worth $4,332,366,000 after acquiring an additional 4,276,073 shares during the last quarter. Norges Bank purchased a new stake in Digital Realty Trust in the fourth quarter valued at $3,402,995,000. State Street Corp raised its position in Digital Realty Trust by 1.1% in the fourth quarter. State Street Corp now owns 20,649,053 shares of the real estate investment trust’s stock valued at $3,219,256,000 after purchasing an additional 231,933 shares during the period. Finally, Bank of America Corp DE lifted its stake in shares of Digital Realty Trust by 6.0% in the 1st quarter. Bank of America Corp DE now owns 9,470,695 shares of the real estate investment trust’s stock valued at $1,706,714,000 after purchasing an additional 534,158 shares during the last quarter. Institutional investors and hedge funds own 99.71% of the company’s stock.

Digital Realty Trust Trading Up 10.8%

The firm has a market cap of $69.80 billion, a price-to-earnings ratio of 96.42, a price-to-earnings-growth ratio of 5.42 and a beta of 1.03. The company has a debt-to-equity ratio of 0.78, a quick ratio of 1.59 and a current ratio of 1.59. The company has a 50 day moving average price of $184.56 and a 200 day moving average price of $180.71.

Digital Realty Trust (NYSE:DLR) last issued its quarterly earnings data on Thursday, July 23rd. The real estate investment trust reported $1.21 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.98 by ($0.77). The business had revenue of $1.92 billion for the quarter, compared to analyst estimates of $1.66 billion. Digital Realty Trust had a return on equity of 3.50% and a net margin of 11.80%.The firm’s revenue for the quarter was up 28.9% compared to the same quarter last year. During the same period in the previous year, the business posted $1.87 earnings per share. Digital Realty Trust has set its FY 2026 guidance at 8.150-8.200 EPS. On average, research analysts expect that Digital Realty Trust, Inc. will post 8.26 earnings per share for the current year.

Digital Realty Trust Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th were given a dividend of $1.22 per share. The ex-dividend date was Monday, June 15th. This represents a $4.88 dividend on an annualized basis and a dividend yield of 2.5%. Digital Realty Trust’s dividend payout ratio (DPR) is currently 236.89%.

Digital Realty Trust Company Profile

Digital Realty Trust, Inc (NYSE: DLR) is a real estate investment trust that owns, acquires and operates carrier-neutral data centers and provides related colocation and interconnection solutions. The company focuses on large-scale, mission-critical facilities that support the physical infrastructure needs of cloud providers, enterprises, network operators and content companies. Digital Realty’s offerings are designed to enable secure, reliable and highly available IT infrastructure with an emphasis on power density, cooling, and physical security.

Digital Realty’s product set spans wholesale data center space, turnkey build-to-suit facilities, and retail colocation suites, complemented by interconnection services that allow customers to establish private and public connections to networks, cloud on-ramps and other ecosystem partners.