Zacks Investment Research Downgrades Alexandria Real Estate Equities (ARE) to Hold

Alexandria Real Estate Equities (NYSE:ARE) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Friday.

According to Zacks, “Shares of Alexandria have outperformed the industry, in the past year. Further, the Zacks Consensus Estimate for fourth-quarter 2017 funds from operations (FFO) per share remained unchanged 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 high demand. This enables the company to enjoy high occupancy and generate steady rental revenues from its properties. Moreover, ushering in good news for shareholders, on Dec 4, 2017, the company announced a 5% sequential hike in quarterly cash dividend, reflecting robust cash flow and solid balance sheet. However, sale of non-core assets is anticipated to have a dilutive impact on earnings. Further rate hike add to its woes.”

ARE has been the topic of several other research reports. Bank of America raised their price objective on shares of Alexandria Real Estate Equities from $129.00 to $133.00 and gave the company a “neutral” rating in a research report on Monday, November 6th. 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. 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. National Bank Financial cut shares of Alexandria Real Estate Equities from an “outperform” rating to a “sector perform” rating and decreased their target price for the stock from $20.00 to $18.00 in a research report on Monday, October 23rd. Finally, Royal Bank of Canada reiterated a “hold” rating on shares of Alexandria Real Estate Equities in a research report on Monday, October 23rd. Four research analysts have rated the stock with a hold rating and five have given a buy rating to the company’s stock. The stock has an average rating of “Buy” and an average target price of $99.91.

Shares of Alexandria Real Estate Equities (NYSE:ARE) opened at $125.12 on Friday. The company has a current ratio of 0.21, a quick ratio of 0.21 and a debt-to-equity ratio of 0.83. The firm has a market cap of $12,659.39, a price-to-earnings ratio of 21.17, a PEG ratio of 2.81 and a beta of 0.84. Alexandria Real Estate Equities has a 52-week low of $106.89 and a 52-week high of $134.37.

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

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

Large investors have recently modified their holdings of the stock. Simplex Trading LLC bought a new stake in Alexandria Real Estate Equities in the 4th quarter worth $244,000. DnB Asset Management AS bought a new stake in Alexandria Real Estate Equities in the 4th quarter worth $1,569,000. New Mexico Educational Retirement Board grew its holdings in Alexandria Real Estate Equities by 1.9% in the 3rd quarter. New Mexico Educational Retirement Board now owns 21,469 shares of the real estate investment trust’s stock worth $2,554,000 after acquiring an additional 400 shares during the last quarter. Public Employees Retirement System of Ohio grew its holdings in Alexandria Real Estate Equities by 26.9% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 177,013 shares of the real estate investment trust’s stock worth $21,059,000 after acquiring an additional 37,515 shares during the last quarter. Finally, GSA Capital Partners LLP bought a new stake in Alexandria Real Estate Equities in the 3rd quarter worth $799,000.

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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.

Analyst Recommendations for Alexandria Real Estate Equities (NYSE:ARE)

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