Alexandria Real Estate Equities (ARE) Downgraded by Zacks Investment Research to “Hold”

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

Other research analysts have also issued research reports about the company. Mizuho reiterated a “buy” rating and set a $140.00 target price on shares of Alexandria Real Estate Equities in a research report on Wednesday, November 1st. Canaccord Genuity reiterated a “buy” rating and set a $20.37 target price on shares of Alexandria Real Estate Equities in a research report on Monday, December 11th. Bank of America upgraded Alexandria Real Estate Equities from a “neutral” rating to a “buy” rating and set a $133.00 target price on the stock in a research report on Monday, December 4th. Royal Bank of Canada reiterated a “hold” rating on shares of Alexandria Real Estate Equities in a research report on Monday, October 23rd. Finally, National Bank Financial lowered Alexandria Real Estate Equities from an “outperform” rating to a “sector perform” rating and decreased their target price for the company from $20.00 to $18.00 in a research report on Monday, October 23rd. Four equities research analysts have rated the stock with a hold rating and five have given a buy rating to the stock. The stock has an average rating of “Buy” and an average target price of $99.91.

Shares of Alexandria Real Estate Equities (ARE) traded down $0.18 during trading hours on Friday, hitting $125.10. The stock had a trading volume of 840,100 shares, compared to its average volume of 1,064,725. Alexandria Real Estate Equities has a 52-week low of $106.89 and a 52-week high of $134.37. The stock has a market cap of $11,970.00, a price-to-earnings ratio of 142.16 and a beta of 0.84. The company has a quick ratio of 0.21, a current ratio of 0.21 and a debt-to-equity ratio of 0.83.

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

In other Alexandria Real Estate Equities news, insider Peter M. Moglia sold 5,000 shares of the firm’s stock in a transaction on Friday, November 24th. The stock was sold at an average price of $127.13, for a total value of $635,650.00. Following the transaction, the insider now owns 116,867 shares in the company, valued at approximately $14,857,301.71. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Joel S. Marcus sold 13,000 shares of the firm’s stock in a transaction on Thursday, November 30th. The shares were sold at an average price of $126.91, for a total value of $1,649,830.00. Following the completion of the transaction, the chief executive officer now owns 651,436 shares in the company, valued at approximately $82,673,742.76. The disclosure for this sale can be found here. Insiders sold a total of 62,250 shares of company stock worth $7,986,230 in the last 90 days. 1.51% of the stock is currently owned by insiders.

Hedge funds have recently made changes to their positions in the business. Federated Investors Inc. PA increased its stake in shares of Alexandria Real Estate Equities by 438.1% in the 2nd quarter. Federated Investors Inc. PA now owns 8,539 shares of the real estate investment trust’s stock worth $1,029,000 after acquiring an additional 6,952 shares during the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS increased its stake in shares of Alexandria Real Estate Equities by 2.6% in the 2nd quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 6,766 shares of the real estate investment trust’s stock worth $815,000 after acquiring an additional 173 shares during the last quarter. Riverhead Capital Management LLC increased its stake in shares of Alexandria Real Estate Equities by 208.3% in the 2nd quarter. Riverhead Capital Management LLC now owns 3,700 shares of the real estate investment trust’s stock worth $446,000 after acquiring an additional 2,500 shares during the last quarter. Teachers Advisors LLC increased its stake in shares of Alexandria Real Estate Equities by 2.3% in the 2nd quarter. Teachers Advisors LLC now owns 359,205 shares of the real estate investment trust’s stock worth $43,273,000 after acquiring an additional 7,935 shares during the last quarter. Finally, TIAA CREF Investment Management LLC increased its stake in shares of Alexandria Real Estate Equities by 6.5% in the 2nd quarter. TIAA CREF Investment Management LLC now owns 202,609 shares of the real estate investment trust’s stock worth $24,408,000 after acquiring an additional 12,393 shares during the last quarter.

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About Alexandria Real Estate Equities

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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