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

Shares of Alexandria Real Estate Equities, Inc. (NYSE:ARE) reached a new 52-week low during trading on Tuesday . The company traded as low as $93.80 and last traded at $94.46, with a volume of 90115 shares changing hands. The stock had previously closed at $94.58.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on ARE. JPMorgan Chase & Co. downgraded shares of Alexandria Real Estate Equities from an “overweight” rating to a “neutral” rating and dropped their target price for the stock from $133.00 to $121.00 in a research report on Wednesday, November 27th. Evercore ISI lowered their price objective on shares of Alexandria Real Estate Equities from $129.00 to $124.00 and set an “in-line” rating on the stock in a research report on Wednesday, October 23rd. Deutsche Bank Aktiengesellschaft lowered Alexandria Real Estate Equities from a “buy” rating to a “hold” rating and reduced their target price for the company from $135.00 to $112.00 in a report on Friday, November 15th. Wedbush reissued a “neutral” rating and set a $104.00 price target on shares of Alexandria Real Estate Equities in a research report on Wednesday, January 29th. Finally, StockNews.com lowered Alexandria Real Estate Equities from a “hold” rating to a “sell” rating in a research report on Wednesday, January 29th. One investment analyst has rated the stock with a sell rating, nine have issued a hold rating and two have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $121.30.

Alexandria Real Estate Equities Price Performance

The company has a 50-day moving average of $100.99 and a 200 day moving average of $110.98. The firm has a market cap of $16.33 billion, a P/E ratio of 52.46, a P/E/G ratio of 3.69 and a beta of 1.16. The company has a debt-to-equity ratio of 0.55, a quick ratio of 0.21 and a current ratio of 0.21.

Alexandria Real Estate Equities (NYSE:ARE) last announced its earnings results on Monday, January 27th. The real estate investment trust reported $2.39 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.91 by $1.48. Alexandria Real Estate Equities had a net margin of 10.36% and a return on equity of 1.43%. On average, sell-side analysts anticipate that Alexandria Real Estate Equities, Inc. will post 9.34 EPS for the current year.

Alexandria Real Estate Equities Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, January 15th. Stockholders of record on Tuesday, December 31st were paid a $1.32 dividend. This is a boost from Alexandria Real Estate Equities’s previous quarterly dividend of $1.30. This represents a $5.28 annualized dividend and a dividend yield of 5.59%. The ex-dividend date was Tuesday, December 31st. Alexandria Real Estate Equities’s dividend payout ratio (DPR) is 293.33%.

Alexandria Real Estate Equities declared that its board has authorized a stock buyback 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 purchase up to 2.7% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s management believes its stock is undervalued.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Presima Securities ULC increased its stake in Alexandria Real Estate Equities by 0.9% during the 3rd quarter. Presima Securities ULC now owns 11,725 shares of the real estate investment trust’s stock worth $1,392,000 after purchasing an additional 100 shares in the last quarter. Callan Capital LLC lifted its position in Alexandria Real Estate Equities by 1.3% in the 4th quarter. Callan Capital LLC now owns 8,946 shares of the real estate investment trust’s stock valued at $873,000 after acquiring an additional 111 shares in the last quarter. Capital Square LLC boosted its stake in Alexandria Real Estate Equities by 2.1% in the 3rd quarter. Capital Square LLC now owns 5,811 shares of the real estate investment trust’s stock worth $690,000 after purchasing an additional 118 shares during the period. Private Advisor Group LLC increased its holdings in Alexandria Real Estate Equities by 5.1% during the 3rd quarter. Private Advisor Group LLC now owns 2,651 shares of the real estate investment trust’s stock worth $315,000 after purchasing an additional 129 shares in the last quarter. Finally, NBC Securities Inc. boosted its position in shares of Alexandria Real Estate Equities by 9.7% during the third quarter. NBC Securities Inc. now owns 1,475 shares of the real estate investment trust’s stock worth $175,000 after buying an additional 130 shares during the period. 96.54% of the stock is owned by institutional investors and hedge funds.

About Alexandria Real Estate Equities

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.