Citigroup Inc., one of the world’s leading financial institutions, has recently filed its latest disclosure with the Securities and Exchange Commission (SEC), revealing that it has cut down its equity stake in Alexandria Real Estate Equities, Inc. by 19.0% in the fourth quarter.
According to Citigroup’s most recent filing, it had owned 134,286 shares of Alexandria Real Estate Equities’ stock before selling off a total of 31,598 shares over the course of the quarter. As a result of these transactions, Citigroup’s equity holding in Alexandria Real Estate Equities saw a reduction worth nearly $20 million as the bank now owns only 0.08% stake in the real estate investment trust.
The news comes on the heels of Alexandria Real Estate Equities recent quarterly earnings report for Q1 2022. The real estate giant missed analysts’ consensus estimates by a sizeable margin with regards to EPS data results, reporting $0.44 per share against an expectation of $2.15 from market analysts. However, revenue figures showed a healthy growth rate during Q1 2022 with $700.80 million being reported versus a predicted figure of $686.70 million.
Despite reporting lower than expected earnings per share for Q1 2022 and losing one institutional investor like Citigroup Inc., market analysts remain optimistic about Alexandria Real Estate Equities’ future prospects mainly due to increased year-over-year revenues and positive forward-looking projections put out by sell-side analysts indicating an estimated earning per share total of $8.94 for this fiscal year.
Additionally, there have been some notable insider deals within the company’s upper management hierarchy reported recently too – Chairman Joel S. Marcus sold off approximately 7,500 shares back on May 8th, which amounted to roughly $916 thousand worth of equity stake changeover at an average price-per-share cost point resting at around $122 .20 apiece. Marcus remains invested in the company, however, holding a total of 351,354 shares, valued at around $42.9 million in the wake of his recent transaction.
Overall Alexandria Real Estate Equities’ financials still appear strong despite Citigroup Inc.’s recent cutback of shares within the trust’s equity portfolio amidst mixed Q1 EPS results revealing; an essential factor that may play into investors’ sentiments going forward into 2022 has yet to be seen.
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Increased Investments in Alexandria Real Estate Equities Boost Confidence in REIT’s Financial Performance
Alexandria Real Estate Equities, Inc. has recently seen large investments by several key investors, indicating increased confidence in the real estate investment trust’s (REIT) financial performance. Guardian Wealth Advisors LLC acquired a stake in Alexandria Real Estate Equities during Q3 2020 worth $36,000, while First Horizon Advisors Inc. upped its stake by an impressive 96.9% to 254 shares valued at $36,000. Parkside Financial Bank & Trust and Addison Advisors LLC also boosted their holdings by 93.8% and 94.8%, respectively, to acquire additional shares priced at $43,000 each quarter. Lastly, Quent Capital LLC purchased an additional 233 shares in Alexandria Real Estate Equities during Q3 2020 for a sum of $50,000 leading to institutional investors owning nearly 90% of the company stock.
The shares of Alexandria Real Estate Equities are currently traded on NYSE under the code ARE at a price level of $120.81 as of Tuesday’s opening bell with notable drops from its previous trading days on negative news about the US economy published recently . The company’s moving averages show that its share values have gone down over the last few months with a 50-day moving average price being recorded at $123.55 while it’s seven months historical average was almost $142 per share; with reference to these averages market analysts are recommending hold or outperform rating for investing in this high growth potential REIT.
Furthermore Joel S Marcus recently sold some of his stake in ARE with disclosed price as above i.e., $122 per share which adds up to approximately $916k in total sale value leading him holding close to around three hundred fifty-one thousand shares costing forty-two million dollars plus valuing his current position going forward into future trades.
Alexandria Real Estate Equities currently boasts a market capitalization of approximately twenty point nine billion dollars with a P/E ratio of 26.67 and a PEG ratio of 1.42, indicating favorable trading potential for REIT investors. With the dividend declared recently by the management in April this company has been gaining the confidence of higher yielding investors as per Bloomberg reports who forecasts its moderate buy rating with an average price target of around $164 at present. The company’s debt-to-equity ratio is 0.51 and quick ratios remain comfortably placed at about 0.53x which indicates some room for increase in borrowing to finance future projects since long term debt can be committed upon being supported by cash available or will be available in short time frame.
Several analysts have released their reports on Alexandria Real Estate Equities’ stock performance, with Robert W. Baird providing an “outperform” rating, upping their target price to $174 from $162 on February 2nd, advocating buying are shares which backed by StockNews.com’s recent action prompted many retail customers to make purchases leading up to mid-May but later end up selling down disappointed leading to share price declines subsequently showing corrections in market’s self-correcting algorithms especially when not much positive news was continuously being provided regarding ARE during May-June period; as such caution must be observed before or while making investment decisions revolving solely around growth potential although this could vary depending upon individual risk profiles.
Overall, Alexandria Real Estate Equities continues to provide a stable investment opportunity for long-term investors backed up by recurring dividend income which further provides much needed stability especially when free cash flow is used towards effectuating new acquisitions/modernization/renovations that help improve earnings going forward into future periods then than remain stagnant like what happened over last quarter/year for ARE, further ignoring any distortions that arise due to seasonal sales patterns or other macroeconomic factors that tend to boost or hinder overall economic growth figures appearing in consumers’ minds continually rise and fall through inelastic effects. Its previous quarterly dividend payment on April 14th was $1.21 per share, representing an annualized yield of 4.01%, with the recent purchase activities made by key investors providing further encouragement for those investors considering investment into this high-growth potential REIT market sector.
Source: beststocks.com
